Ebb and flow

POLICY divergence and disinflationary pressures will be among the key themes to watch out for in the year ahead for currency investors. On the central banks' divergence front, the US Federal Reserve is expected to hike interest rates later this year, which will be its first time since 2006. On the other hand, the European Central Bank (ECB), Bank of Japan (BOJ), and People's Bank of China will continue on a path of further policy easing.