The Brilliant World of FX (Episode 1): The big Japan debate
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The Brilliant World of FX is a new series by Deutsche Bank’s FX research team where they actively debate the global macro and currency outlook. In this first episode, George Saravelos (Global Head of FX Research) moderates a discussion between Mallika Sachdeva (Thematic FX Strate
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FX Crosscurrents: The Impact of Global Central Bank Decisions
The desk believes that the recent decisions made by global central banks, particularly the Federal Reserve, will lead to further volatility in the dollar and increased divergence in FX pairs. Per the full note from MUFG EMEA, the Fed's unexpected shift in the dot plot—going from no hikes to nine members expecting a hike—has spooked the market and significantly influenced FX dynamics. As the central bank landscape evolves, traders should brace for a complex interplay between policy adjustments from the Fed and other banks, notably the BoJ and RBA. This shifting backdrop could create opportunities for tactical positioning across key currency pairs.