G10FX: Assessing The Key FX Driver In 2018 & Its Potential Impact On Major FX – Nomura

Nomura Research discusses the key FX drivers going into the coming year and thinks that monetary policy expectations will likely remain a key driver of G10 FX in 2018 with volatility likely to remain subdued and more central banks moving towards normalization in 2018.

1- "We continue to expect a hawkish shift from the ECB, which could see the EUR upside trend continue in 2018."

2- "We expect GBP to remain supported by the BoE hiking twice in 2018."

3-"Meanwhile, Fed hikes at this mature stage in the policy cycle are unlikely to provide the USD with much respite as the rest of the world leaves the lower bound."

4- "AUD, NZD and CHF are likely to underperform with their central banks’ dovish stances remaining intact through 2018," Nomura argues.

Source: Nomura Securities ResearchOriginal Article