Five central banks will meet in the next week, and these strategists have trading plans.
What's more exciting than a week of central bank meetings? A week of central bank meetings where no significant policy changes are expected. The blitz starts Tuesday with the Bank of Canada, and continues with the U.S., New Zealand, Sweden, and Mexico. The trick is how to trade on all the confabs.
Andrew Busch, global currency and public policy strategist at BMO Capital Markets, will have his ear to the ground.
"We're going to be parsing the language because nobody expects them to act," he told CNBC's Amanda Drury. Busch is especially interested in the Bank of Canada meeting, since officials there recently warned that they may have to cut theirgrowth forecasts and Canadian CPI has been soft. Also, he points out, "the Canadian dollar has had a pretty good week this week."
Rebecca Patterson, chief investment officer at Bessemer Trust, is watching Mexico. The economy has been surprisingly strong, she says, and inflation has been rising. But the central bank is averse to interest rate changes to keep things in check, preferring to let a strong peso do the job, she says.