The key event next week will be the Fed meeting on Wednesday. The central bank will release an updated dot plot, which will reflect the FOMC's expectations for the path of the interest rate next year, as well as in the long term. This will probably be the most significant information for markets. With inflation accelerating in the US to 8.6%, investors are waiting for more decisive action from the Fed, for example, a 75 bp rate hike. However, the Fed has an obstacle on this path in the form of stagflation risks - the pace of tightening cannot become more and more aggressive indefinitely, so one should carefully consider the scenario where the Fed announces a more cautious step and risk assets react positively to the outcome of the meeting, and the dollar falls. There is a chance that the meeting will result in a classic "sell on the facts” move in the greenback.

In addition to the Fed, the decision on the interest rate will be made by the Central Bank of Switzerland (SNB) on Thursday. As elsewhere, inflation is rising in the country, so a hawkish move that could cause a positive CHF reaction cannot be ruled out.

On Friday, the Bank of Japan's monetary policy meeting will take place, and investors will be waiting for new details on possible BoJ interventions in order to contain the weakening of the yen. USDJPY rose to 135 this week and the monetary authorities warned that the rate may not reflect the fundamental value of the yen. However, markets do not expect any tightening, like QE cut or a rate hike.