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Hardy: As the Fed meets this week, what to expect in FX
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It's a big week ahead for central banks, with the Fed meeting on Tuesday and Wednesday. Saxo's John Hardy says as well as releasing its new monetary policy statement, it will also publish its economic projections as well as where members expect policy to go after 2017. The market will also be watching for language that could hint at when a future rate rise could be.
Norway's Norges Bank meets on Thursday and the market is split on whether or not it will cut rates. Hardy says he thinks the bank could hold back because of recent poor economic data. If that's the case, John thinks it will boost the Norwegian Krone. If the bank does cut rates, there is likely to be more downside he says.
The Swiss National Bank is also one to watch as it meets on Thursday. Hardy says there could be a lot of volatility in the Swiss Franc as the Eurogroup meets on the same day to discuss Greece.
Hardy also looks at Eurodollar saying it's in a nervous range. He explains why he thinks it will head lower in the medium to long term - but it's just a question of when that will happen.