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The Week ahead in FX: FOMC, SNB and Scottish vote!

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An action-packed week awaits for FX traders with a critical FOMC meeting next Wednesday and the Scottish independence referendum hot on its heels on Thursday. On top of that there's a potentially pivotal Swiss National Bank meeting. Saxo's John Hardy guides currency traders through a very busy week ahead.

Next Wednesday’s FOMC meeting is clearly the dominant event risk. That's assuming that Scotland goes with expectations and decides to vote against tearing itself loose from the UK at next Thursday’s poll. Rapidly rising yields in US treasuries are a form of “taper tantrum” and are one of the key driving forces for USD strength versus the commodity currencies and Japanese yen.

Elsewhere, the Swiss National Bank will announce its latest policy decision on Thursday. This is the most anticipated meeting in some time. The ECB’s move into negative rates territory is putting enormous pressure on the EURCHF floor at 1.2000 if the SNB doesn’t act.