UBS - This Week's Key Points: Fed tapering isn't imminent but keep favouring dollar

UBS - "Despite the volatile moves suffered by financial markets particularly the Nikkei, we think the key trend in currency markets of a rising dollar remains intact.
(...) For now the focus of the currency markets will remain on Japan. Bank of Japan Governor Kuroda will speak on Sunday and again on Wednesday. In addition the central bank will meet investors also on Wednesday to discuss the Japanese bond and equity markets. If Kuroda and his officials succeed in lowering volatilty in JGB yields, financial markets will switch their focus back to when the Federal Reserve will start slowing down its bond purchases. That suggests the dollar will resume its uptrend against the rest of the major currencies.

This week's key points are:

- BoJ Kuroda key in the week ahead for yen
- Fed tapering isn't imminent but keep favouring dollar
- euro will remain on the sidelines as ECB waits and sees
- weaker UK data supports MPC doves, short Cable
- SNB may adjust currency floor, bearish franc
- Australia's capex report key in the week ahead"

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