No major fundamentals from the U.S. economy will take the lights this week, while three other major central banks will steal it by announcing their rates decisions this week, giving a chance for traders to start evaluating exchange rates not only by the U.S. economic outlook, but also by the inside economic reflection of the countries' on their currencies.
The Reserve Bank of Australia will take the first shot tomorrow, as it is widely expected that they will hike rates a 25 basis point, driving it up to 7.00% from 6.75%, giving a very close attention and cautious to their price stability as inflation level rates reached out to 4.00% the highest since may 2006, and it looks like a necessary step to be taken.
Later this week, the European Central Bank and the Bank of England will announce their rates decision, while the ECB is expected to hold them steady in controversial move, the Bank of England is almost taken for granted that they will lower their rates a 25 basis points, driving it down to 5.25%, as fears from the global economic slow down is the major player in that picture.
The world will wait most importantly the news conference that will be held by Mr. Trichet, the president of the ECB right after the issuance of the rate decision, which might clarify some points for those who have their doubts that the ECB started already to be dovishÃ¢â‚¬Â¦
Let's begin this journey together dear reader, it's a little bit more relaxing than last week's, but you never know, things might get rough eventually.