Macro: It’s all about elections and keeping status quo
Markets are driven by election optimism, overshadowing growing debt and liquidity concerns. The 2024 elections loom large, but economic fundamentals and debt issues warrant cautious investment.
Head of FX Strategy
Summary: This week, all eyes turn to US jobs data and Powell’s testimony, pivotal in gauging the Fed's trajectory. Despite potential dollar weakness from a NFP miss, FX focus may lean towards crosses over dollar pairs. EUR braces for ECB, while GBP awaits fiscal cues. China's policy direction during the two-sessions could sway AUD more than the yuan. Swiss CPI could impact March rate cut speculations, while NZD's carry appeal remains a steady beacon amidst the flux. Stay vigilant as the market interprets these key events, shaping FX trajectories in the week ahead.
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