Central bank meetings are in focus this week, with the Bank of Japan (BoJ), Federal Reserve (Fed), and Bank of England (BoE) all expected to keep rates unchanged. The BoJ might make some policy adjustments, while the Fed is likely to maintain its cautious approach. The NFP report and Eurozone GDP and CPI data will also be closely watched. The Fed’s pause is unlikely to provide much relief for yields, and investors will be looking to Chair Powell’s press conference for further guidance. The BoE is pinning its hopes on a drop in inflation and is not expected to hike rates. The BoJ meeting could be the wildcard of the week, with speculation of a surprise policy tweak. Eurozone rates are expected to have peaked, and the euro is sliding. Data releases next week may confirm the start of a recession in the Eurozone. The Canadian dollar may remain under pressure due to weaker growth prospects, while the Australian and New Zealand dollars may receive some support from positive Chinese PMI figures.
