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Week ahead in FX — #SaxoStrats

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October 28, 2016 bank of england, bank of japan, bond yields, central banks, currency, fed, federal reserve, forex, fx, john hardy, saxo bank, saxo tv, saxobank, tradingfloor.com, usdjpy, week ahead, yields
Saxo Bank’s head of FX strategy John Hardy outlines the key events we can expect in forex next week.

Main focus points: 
  • Global bond yield surges higher resulting in a stronger dollar and a weaker yen. Bank of Japan's yield curve control policy goes against yen's favour.
  • US data key as we look towards a potential rate hike. 
  • It is hard to judge if the market is willing to commit capital to trades ahead of US presidential election. 
  • Commodity dollars and EM currencies could be weakest against US dollar. 
  • Bank of England meeting is the most anticipated. Rate cut may be off the table because of recent inflation data.