Market concerns around an energy supply crunch in Europe intensified over the week as the disruptions sent European energy prices to the roof and occupied headlines throughout the week. On the back of this, EURUSD dropped down to lows last seen in August, while a stronger dollar across the board also weighed on the pair. On the USD side, global growth concerns due to the Delta variant, along with poor data from China led to the greenback being bid across the G10, while US retail sales took the rally a step further when they surprised to the upside. Next week’s calendar is packed with central bank meetings, with the FOMC’s decision on Wednesday eyed as the most important economic event by markets as the decision comes with a fresh dot plot. On top of that, the Bank of England is set to release their latest policy decision, while the Norges Bank is expected to be the first G10 central bank to raise rates since the pandemic. Markets will also tune into meetings from the Bank of Japan, the Riksbank, the central bank of Brazil and the CBRT.
Read Monex’s Week Ahead in full here:
Simon Harvey, Senior FX Market Analyst
Ima Sammani, FX Market Analyst