In this weeks update, Senior Market Analyst Craig Erlam gives you a guide to the week ahead in the FX markets. While the week may not be packed with economic releases and central bankers hinting at upcoming policy changes, there’s no shortage of political events and earnings reports, while the ECB is also poised to announce the next step for its QE program.

One story that’s likely to remain in the headlines for much of the week is that of Catalonia independence. After weeks in which a lot has been said but little done, Madrid has moved to impose direct rule on Catalonia, who’s parliament has agreed to meet on Thursday to discuss its next step. It seems the situation is going to get a whole lot worse before it improves.

Japanese Prime Minister Shinzo Abe, along with the LDP’s coalition partners, secured a two thirds super majority in the lower house in elections over the weekend. The result is regarded by Abe and his colleagues as a fresh mandate for Abenomics and therefore suggests the period of ultra-loose monetary policy will continue.

The ECB monetary policy decision on Thursday is the week’s stand-out event, with the central bank poised to announce plans for its quantitative easing program beyond the end of the year. With a reduction already priced in, the question now is whether the ECB can deliver more than the market is pricing in? If not, is the market well position or poised for a correction?

Craig discusses all of this and much more and also gives his live analysis on EURUSD (13:17), GBPUSD (14:24), EURGBP (15:41), AUDUSD (17:11), USDCAD (18:46), GBPCAD (19:52), NZDUSD (21:10), USDJPY (22:39), GBPJPY (24:11) and EURJPY (25:10).

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