UBS - "Sterling is likely to be the next major currency that depreciates strongly. This follows the plunge of the yen over the last few months. As central banks tolerate higher levels of inflation, the pound is set to weaken further across the board particularly against our favourite G4 currency, the US dollar. This week's key points are:
- watch FOMC minutes for signs of Fed easing fatigue
- Italian elections key for euro in the week ahead
- forget G20, Abe's BoJ choice to keep yen pressured
- BoE giving up on inflation targeting, short Cable
- Swiss policy moves to keep franc on the soft side
- Riksbank surprises, shift view on krona
- NZ data outperforms, stay short AUDNZD"
Mansoor Mohi-uddin, Managing Director and Head, Foreign Exchange Strategy at UBS Macro Research"