Central bank policy

The currency market kept to familiar ranges at the start of a busy week peppered with central bank meetings, corporate results and updates on U.S. inflation and payrolls. The week features quarterly earnings from more than 140 S&P 500 companies, including Apple Inc. Disappointing results from Intel Corp and Twitter soured the mood on the Nasdaq on Friday, though the S&P 500 and Dow still ended firmer for the week. The U.S. Federal Reserve meets on Tuesday and Wednesday and is widely expected to stand pat while reaffirming the outlook for further gradual rate rises. The market is almost fully priced for a hike in September and leaning towards a further move before year-end. A Bank of Japan policy meeting that ends on Tuesday has taken on greater importance amid talk it could tweak its massive asset-buying campaign.

Coming ahead this week is the Fed, the BoE and the BoJ monetary policy, while other important releases include for the US: jobs report, trade balance, personal income and spending, PCE prices and ISM PMIs, for UK: monetary indicators and PMIs, for the Eurozone: GDP growth and inflation and for Japan: unemployment and consumer confidence. With all these economic data we should expect increased volatility and price action in the forex market this week, but also for today as key economic events include the Business Confidence in the Eurozone, the Inflation Rate in Germany, the Consumer Confidence in UK and the Unemployment Rate in Japan.