FED finally hinting how QE cruise may end

The key developments across the markets this week have been an article giving first details on how the Fed would begin to unwind QE as the economic recovery continues.
FED finally hinting how QE cruise may end
Additionally an upgraded UK growth figure by the Bank of England in its quarterly inflation report and the  euro zone growth figures showing countries right across Europe continuing to struggle.

The higher growth figures expected by the Bank of England have lifted the pound, particularly against the Euro given the continued deterioration in growth across the continent.

The slowdown is slowly spreading from the troubled periphery into the stronger core countries, with Germany positing lower than expected Q1 GDP and France re-entering recession.

The news pushed the Euro to a one month low against the Dollar and depending on the tone of next weeks Fed meeting, where the Fed is expected to continue to discuss unwinding QE and varying the scale of asset purchases, the Dollar could have significant further upside over the coming weeks.

Next week is a busy one for the FX market, with central bank meetings and publications galore.

The Fed and Bank of Japan both have monetary policy meetings, plus we have minutes from this month’s meeting from the Bank of England and Reserve Bank of Australia. The RBA release is eagerly anticipated given the drop in interest rates took the market by surprise.

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