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Week Ahead: Last FOMC Before Liftoff, Buy USD, GBP Test, Cautious CAD
For many investors next week’s FOMC meeting will be the last real chance for the Fed to give markets an ‘official warning' before a potential lift-off in September. Yellen's Humphrey Hawkins testimony has seemingly prepared the ground for a more hawkish message with the Fed Chair signalling that higher rates may be needed before long. The July statement could corroborate that view by conveying growing confidence in the UK’s economic recovery and the outlook for inflation. Coupled with upbeat US data next week (eg, Q2 GDP), a more constructive Fed statement should encourage further frontloading of Fed rate hike ... (full story)