Forex Today: USD rebounds in Asia, PMIs, BOE, Fedspeaks - Key
|Resurgent US dollar demand across the board emerged the main theme in Asia this Tuesday, which added to the cautious RBA minutes-led losses in the Aussie. While the safe-haven assets suffered amid a better risk-environment, as markets remain expectant of some hawkish talks from a slew of Fedspeaks lined up for release later today.
The European calendar for today is an action-packed one, with a flurry of flash manufacturing PMI reports from across the Euro area economies, which will be followed by the UK public sector finances data and BOE inflation report hearing. BOE Mark Carney alongside his team will testify before the Treasury Select Committee later today on Feb inflation report
In the NA session, we have the flash services and manufacturing PMI reports from the US. Besides, Fed officials Harker, Kashkari and Williams will be up on the rostrum later tonight.
Main topics in Asia
Fed’s Harker – Won’t take March hike off the table
Philadelphia Federal Reserve President Patrick Harker reiterated that March should be considered for next rate hike.
RBA minutes: Unchanged policy consistent with sustainable growth and inflation target
The minutes of the February RBA monetary policy meeting, when interest rates were held unchanged at 1.5%, have been released.
PBOC will make changes to targeted RRR rates, effective from 27 Feb - RTRS
Reuters reports headlines from the Chinese central bank (PBOC), noting that the bank will make dynamic changes to the targeted RRR rates, effective from 27 Feb.
BOJ’s Kuroda: Continuing powerful easing is appropriate
BOJ Governor Kuroda is out on the wires now, via Reuters, making a scheduled speech in Parliament.
Key focus for the week ahead
EUR/USD testing lows near 1.0580, PMIs eyed
The EUR/USD pair is seen meandering near five-day lows below 1.06 handle, and looks vulnerable amid broad based US dollar strength and widening European bond yields in wake of political uncertainty.
A further 10% upside for the USD persists – Deutsche Bank
FX Strategists at Deutsche Bank project a further 10% upside for the USD, citing potential US border tax as one of the catalysts behind the upmove.
GBP/USD around 1.2450 ahead of BoE
The Sterling is following south the rest of the risk-associated peers, taking GBP/USD to the mid-1.2400s ahead of UK data and the BoE’s Inflation Report.
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