Central banks to dominate the agenda in trading this week ...Middle East

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As per usual, the language and communique from the Fed will be the most interesting of the bunch. That especially with Trump now in the picture. He is calling for the Fed to lower rates "immediately" but policymakers will be sticking to their guns for now. And markets seem to believe that to be the case as well.

And lastly, we'll have the BOC where it will be interesting to see how they position their communication for March and/or April next. Traders are seeing ~94% odds of a rate cut this week but are less certain of another one in March. The pricing shows that April is the suggestive timeline for the next rate cut but Trump tariffs will certainly have say in all of this. And they are set to be enacted on 1 February.

This article was written by Justin Low at www.forexlive.com.

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