Monetary policy divergence should become a more important driver of the FX markets, with both the Fed and the BoE having moved closer to hiking rates recently. Next week’s NFP and the BoE’s policy trifecta, also known as the ‘Super Thursday’, when the August Inflation report, rate decision and minutes will be released in one go, should encourage further frontloading of rate-hike expectations. This should support USD and, to a lesser degree, GBP. At the same time, more dovish rhetoric from the RBA or potential disappointments from the upcoming Australian tier-one data releases could keep the pressure on AUD. The G10 ... (full story)