 Sterling ended last week as the strongest one as no-deal Brexit is now politically ruled out. But it should be noted that the path forward remains unclear, as least for a few more days. Thus, the upside breakout of Sterling was indecisive. The Pound has indeed closed below recent highs against Dollar and Yen. On the other hand, Euro ended as the second strongest while Yen was the weakest, followed by Dollar. Overall, as the key issues in Brexit and US-China trade negotiations are unresolved, traders hesitated to commit to a firm direction. Three central banks will meet this week, including Fed, SNB and BoE. All are expected to keep monetary policies unchanged. SNB and BoE are unlikely to provide any fresh inspirations to the market. Fed's new economic projections, however, will finally tell us, in terms of numbers rather than words, what made Fed change to a "patient" stance this year. RBA minutes will also be scrutinized. However, while more economists are now predicting two rate cuts this year, the central could refrain from giving any hints of rate cuts until May meeting. |
