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The picture of the outlook for central banks moving into 2023 is becoming a little clearer. As markets move towards the end of a tumultuous week the USD is emerging as a winner, whilst risk appetite has soured.
The Bank of England has hiked its Base Rate by 50 basis points. However, a set of worrying economic projections has driven selling pressure on GBP positions.
The nominee hearings governor in Japan’s parliament for the next BoJ show Ueda toeing the dovish line. However, this may still result in a change to yield curve control in the coming weeks. For now, JPY has ticked slightly lower.
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