Today, the Reserve Bank of Australia raised interest rates by 50 basis points, while the Bank of Japan is staying dovish. Uncertainty regarding monetary policies and inflation across Asia may have been the cause for mixed trading results on major Asian Indices today.
As inflation reached record levels across much of the developed world in April, it’s looking more likely that many central banks could follow the Federal Reserve’s hawkish turn. Accordingly, the values of several key Forex pairs could be set for a shift.
Four major U.S. banks are set to release their Q4 earnings reports this week. Ahead of an expected increase in interest rates, investors may be waiting to see how these financial firms have performed over the fourth quarter of 2021.