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The Federal Reserve and the BOE are convening while the euro is still responding to the ECB. What currencies are going to be the big movers? Here are the highlights of the week according to the team at Credit Agricole:

Here is their view, courtesy of eFXnews:

Credit Agricole CIB FX Strategy Research discusses the outlook for GBP, USD, and EUR for the coming week.

On the GBP front, CACIB notes that the currency will be among the big movers ahead of the BoE’s inflation report

“We are  more constructive on GBP  and expect the BoE to signal it is ready to hike rates again to fight any persistent inflation overshoot on the back of renewed GBP weakness,” CACIB argues.

On the EUR   front,  CACIB notes that the single currency sold off when the ECB extended its QE programme this week.

“The lack of significant dovish surprises, however, could see  EUR stabilising before long, as investors turn their attention to the improving Eurozone data,” CACIB adds. In its portfolio,  CACIB maintains   long EUR/USD*, and long EUR/CHF*.

Finally  on the USD front,  CACIB   notes that the big theme in the FX markets in recent weeks has been the revival of the USD-rally.

“We are  hesitant to jump on the USD bandwagon again  and do not expect the currency to strengthen back to its cycle highs,” CACIB argues.

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