(28 JANUARY 2018)The week ahead: Fed meeting, US data in focus

This week comments by the US administration in Davos have weakened the USD, and remarks made by Mario Draghi at the European Central Bank press conference strengthened the euro.

In the coming week a FOMC meeting and important data, about US core PCE and the US labor market, could create headwinds for EURUSD, while tailwinds might be provided by global PMIs demonstrating strong growth worldwide. On balance CIO expects the general trend for a weaker USD against many G10 currencies to continue.

BY UBS