Monetary policy divergence at work – UBS

By FXStreet FXStreet (Córdoba) – The Reserve Bank of Australia (RBA), the Bank of England (BoE) and the Norges Bank all have meetings next week to decide their monetary policy stance. UBS analyst team comments on those decisions.

Key Quotes

“We expect a rate cut by the RBA in response to recent weak inflation data. The Norges Bank is unlikely to make major changes, but the BoE will publish an update of its inflation report, which will provide important guidance on policy”.

“The divergence between the US and the rest of the world was recently reignited by the Federal Reserve keeping open the possibility of a December rate hike. We thus remain positive on the USD”.

“All eyes will now be on PMI data and non-farm payrolls. Another weak payroll number like last month’s could temporarily halt the EURUSD downtrend again”.
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Source:: FX Street