Central Banks will be key this week - UOB

Analysts at UOB Group noted the various Central Bank highlights this week that are sure to be market moving events, potentially determining the medium term directions for the FX space.

Key Quotes:

"The Fed Reserve focus this week will be on the 20/21 Mar 2018 FOMC decision. Post-FOMC, we have various senior Fed officials speaking in public forums including Atlanta Fed President, Raphael Bostic (voter in 2018 FOMC), Minneapolis Fed President, Neel Kashkari (non-voter in 2018 FOMC) and Boston Fed President, Eric Rosengren (non-voter in 2018 FOMC) (all on 23 Mar, Friday).

We also have monetary policy decision by the Reserve Bank of New Zealand this week and no change in policy rate is expected as well. As for Australia, the Reserve Bank of Australia (RBA) will release its March meeting minutes on Tue (20 Mar) while Bank of Canada Senior Deputy Governor Carolyn Wilkins Speech will give a speech on 22 Mar.

BOE Financial Policy Committee reported that the UK current account is increasingly funded by capital inflows, and this increases reliance on the confidence of foreign investors. It noted that the UK banking system could continue to support the economy through disorderly Brexit, and Brexit risks do not warrant additional capital buffers for banks. The committee still sees material risks from the continuity of cross-border derivatives and insurance contracts after Brexit while it viewed that crypto assets do not currently pose risks to UK financial stability."