Race to cut.

Following yesterday surprise announcement that the FED are planning rate cuts next year. Attention now turns to the other currencies and their future path of interest rates.

Whilst we await today's EUR and GBP meetings. Here is a snapshot of the 'hawkisness' or 'dovishness' of each country:

Hawkish: At the top of the pile, clinging on to the possibility of more hikes are: GBP/ NZD / CAD.

Neutral: following last weeks meeting, the RBA switched to neutral, with no hikes or cuts on the agenda.

Dovish: recently, talk has been coming out of Europe that rates cuts will be needed sooner rather than later, yesterday the USD joined the EUR in the dovish camp.

Outlier: JPY. the bank of Japan has maintained a dovish monetary policy done the dawn of time ( or at least that's how it feels) but recently, loud noises are being made about the likelihood the BOJ will take interest rates out of negative territory. Even as soon as next month. This makes next week's BOJ meeting very interesting and potentially tradeable in either direction depending on the outcome.