Week ahead for traders: FOMC, BoE, BoJ, US PCE and GDP create major cross-asset risk
The week ahead brings an unusually concentrated sequence of central-bank decisions, inflation reports and growth data. The Federal Reserve, Bank of England and Bank of Japan will all be in focus, while US GDP, core PCE inflation, Eurozone CPI and Australian CPI may materially change expectations for interest rates.
For traders, the important question is not only what each institution announces. It is whether the outcome is more hawkish or dovish than markets already expect, which assets are most exposed, and whether the first price reaction develops into sustained acceptance or quickly reverses.
What traders need to know this week
Wednesday: The Federal Reserve decision is the main event for the US dollar, Treasury yields, gold and Nasdaq…