Week Ahead – Fed minutes, RBNZ decision, and business surveys on tap
Another busy week is coming up for FX markets, featuring the minutes of the latest FOMC meeting and a rate decision in New Zealand that investors are split on. Most importantly, business surveys from the major economies will reveal whether US inflationary pressures continue to cool off and whether Europe is already in recession. Signs that US inflation is finally simmering down dealt a heavy blow to the US dollar lately, as traders unwound bets that the Fed will raise rates beyond 5%. Admittedly though, the sharp FX moves seem like an overreaction, driven by one-sided positioning in ‘long dollar’ bets. In
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