No major surprises in terms of the upcoming meeting expectations for the major central banks.
Markets are leaning towards a 66% chance of a hike for the BoJ, but with them also planning to announce bond tapering at the meeting, maybe they leave off the hikes for now. I don’t think the bank has in them to be anything but dovish, but time will tell.
Only two cuts are expected (but very close to 50/50), one for the SNB and the BoE, but so close to 50% probability means they are a coin toss right now.
All the rest are expected to leave rates on hold, but probabilities are only high on that front for the Fed and the RBNZ, the others are close to or just above 60% which means incoming data could sway it either way.
This article was written by Arno V Venter at www.forexlive.com.
Source link
