BoE to hike, FOMC to be non-event – ANZ

Analysts at ANZ suggest that the BoE is expected to hike rates this week and so focus will be on the BoE’s forward guidance.

Key Quotes

“Is this ‘one-and-done’ or the beginning of a tightening cycle? Either way, the outlook for the UK remains too uncertain for the GBP to be bullish and, as such, we would recommend selling the pound on any rally.”

“US: While the FOMC meeting will probably be a non-event, policy in the US will be a key driver of the USD. Questions around who will be the next Fed Chair will drive USD volatility, with a decision expected by 3 November. Betting websites have the Fed’s Powell as the front-runner, closely followed by Taylor; but the race among the shortlisted candidates remains close. The tax bill will also be unveiled before the end of the week. Given the rally in the USD after the budget resolution passed, it will be critical to see Republicans uniting behind the plan for the USD rally to extend.”