FX Week Ahead Overview:
- After the Federal Reserve rate decision last week, focus now turns to the many policymakers speaking over the next few days for hints at the potential for a 50-bps rate hike in the coming months.
- UK inflation rates are likely to push higher, posing a test for a Bank of England that has started to take on a relatively less hawkish tone.
- As the Russian invasion of Ukraine wraps up its fourth week, questions linger about much damage has been done to the German and broader Eurozone economy.
For the full week ahead, please visit the DailyFX Economic Calendar[1].
ALL WEEK | Federal Reserve Policymakers’ Speeches
Fed policymakers are on the calendar everyday this week, likely proving to be a significant (if not the most significant) source of volatility for financial markets over the coming days. At last week’s press conference following the March Fed meeting, Fed Chair Jerome Powell said that “many FOMC[2] participants feel compelled to raise Fed Funds rates above neutral rates,” a nod to the fact that interest rate hikes could be rapid and successive over the coming months. Bostic (x2), Powell (x2), Williams, Daly (x2), Mester, Waller (x2), Evans, Williams, and Barkin are all due to give remarks over the coming days, and the appetite for a 50-bps rate hike in either May or June (no meeting in April) will almost certainly be revealed.
03/23 WEDNESDAY | 07:00 GMT | GBP Inflation Rate (CPI) (FEB)
Price pressures in the UK continue to rise, and are likely to do so over the coming months even after the Bank of England raised their main interest rate back to their pre-pandemic level of 0.75% last week. According to a Bloomberg News survey, UK inflation rates
