From Central Bank Shocks to FOMC Fireworks — Here’s What You Missed and What’s Coming Next
Welcome to another power-packed edition of the Edge-Forex Blog, where we break down last week’s market shenanigans and give you a front-row seat to what’s brewing this week. No fluff, no filler — just the cold, hard truth about what’s moving Forex markets. Buckle up, because last week’s action was as wild as a Wall Street wolfpack reunion.
Last Week’s Recap: Central Bank Mayhem & King Dollar’s Comeback
Rate Cut Parade: 4 Central Banks, 1 Wild Week
What do you get when four major central banks drop their rate decisions in the same week? Chaos, volatility, and profit potential galore. The SNB and BoC played Santa early, each delivering 50 basis point cuts, while the ECB was a bit more reserved with 25bps. Over in Australia, the RBA sat this one out, keeping rates steady.
Inflation Refuses to Tap Out
All eyes were on the US inflation numbers, and boy, did they deliver. Core CPI came in at 0.3% MoM and 3.3% YoY, reminding everyone that inflation isn’t going down without a fight. The dollar flexed its muscles in response, posting nearly a 1% weekly gain. If you’re riding the USD train, this is your stop.
Fed Rate Cut Rumors: 95% Priced In?
Markets think they’ve got the Fed’s next move figured out. A 25bp rate cut is 95% priced in for next week. But here’s the twist — the Fed’s been dropping hawkish hints, and if Powell comes in hot, we’re looking at a USD rally that’ll knock yen pairs off their feet. Play this one smart.
What’s Coming This Week: Fireworks in the Forex Arena
Monday: PMI Mania
It’s a PMI extravaganza with flash readings from France, Germany, the Eurozone, and the UK. If you’re trading EUR or GBP, this is where you want to be. PMI surprises have a history of sending currency pairs on wild rides.
Tuesday: UK Wage Growth & Unemployment
If you’re a GBP trader, Tuesday’s like your Super Bowl. Wage growth and unemployment data are dropping, and if those numbers run hot, expect the pound to flex. Everyone’s watching for a hint on where the BoE might move next.
Wednesday: The Main Event— FOMC Decision
This is it, folks. The FOMC rate decision and the ever-dramatic dot plot projections 🌀. Markets expect a 25bp rate cut, but it’s Powell’s words that’ll shake up the forex world. Fewer 2025 rate cuts? Dollar surges.
Wednesday (Again): New Zealand GDP
Kiwi traders, eyes on the prize. Q3 GDP is forecast to be flat, but if it’s worse than expected, NZD’s getting tossed around like a beachball in a hurricane.
Thursday: Triple Threat— Norges, Riksbank, and BoE Rate Decisions
Here’s the deal: The Norges Bank’s got currency weakness issues, so if they’re hawkish, NOK’s taking off. The Riksbank’s expected to cut 25bps, but if inflation’s stronger than thought, don’t rule out a pause. Bank of England? Flatline. No surprises expected there, but surprises happen when you least expect them.
Friday: Retail Sales & Personal Income Bonanza
It’s not over yet. China’s Loan Prime Rate kicks things off, but it’s the retail sales reports from the UK and Canada that could move the needle. Retail sales data has a sneaky way of blindsiding the market. Add in US personal income and spending reports, and you’ve got a recipe for end-of-week volatility.
What’s the Play?
USDJPY — Watch for dollar strength on Powell’s hawkish pivot. This pair’s been a mover, and it’s not done yet.
GBPUSD — UK wage data will set the tone for the week. If wages heat up, the pound’s going for a run.
NZDUSD — Flat GDP? NZD could get slapped. Watch this for momentum plays.
EURUSD — PMI reports will shape the week’s narrative. If Germany’s data surprises, so will the euro.
Final Word
Big moves, big plays, and big profits. That’s this week’s forex forecast. PMIs, wage data, and FOMC theatrics are on deck, and the markets are hungry for action. If you’re not watching these moves, you’re playing yourself.
Stay sharp, stay disciplined, and ride the wave when it comes. This is Edge-Forex — where we don’t just watch markets, we make them move.
