Forex Flash: Central Bank activity this week but no changes expected – Societe Generale

Kit Juckes, Global Head of Currency Strategy at Societe Generale notes that while there are a lot of central bank policy meetings this week, none of them are likely to see any policy changes.

He writes, “The RBA overnight tonight can support AUD marginally (within a AUD/USD 1.03-1.06 range). The UK MPC will be on hold but Governor-elect Carney’s testimony to the TSC will attract more attention and any dovishness will be seen as an excuse to sell GBP. The ECB meeting would be an opportunity for Mario Draghi to calm the market reaction to his comments last time around, when he sounded ‘un-dovish’ and promised a rise in both Euro and rates. A EUR correction ahead of the meeting is possible, providing a chance to go long.”