Flash: Drivers for the week ahead - BBH

FXstreet.com (London) - The currency research team at BBH offer a snap shot for the drivers of the week ahead.

Key quotes:

“The near-term fundamental considerations for the dollar have turned more negative”.

“Reports about growing risk to negative deposit rates by the ECB has not been confirmed”.

“We take this morning’s dovish comments by ECB’s Hansson more about keeping the options open than a statement of intent, in our view “.

“Speculation that the Fed may start tapering next month continues to reverberate – we still disagree”.

“Our confidence that some compromise on the US’s continuing spending resolution and the debt ceiling has been shaken by last week's parliamentary maneuvers”.

“We briefly look at the implications of the Iran nuclear deal and China’s new Air Defense zone initiative”.

“In Europe, the focus will also be on the new German coalition government that may be announced and the ejection of Berlusconi from the Italian Senate”.

“Looking ahead to this week, Japan has a host of economic data to report and the central banks of Brazil and Hungary meet”.