Forex Today: USD softens in Asia, IFO, UK GDP, Fed - Key
|The US dollar corrected lower across the board in the Asian session this Wednesday, as markets resorted to profit-taking after yesterday’s solid rebound, and ahead of the highly-anticipated FOMC minutes. Also, cautious remarks from Fed’s Mester also weighed down on the greenback somewhat.
On the data front, we had unimpressive release of the Australian construction work done and wage price index data, both of which had negligible impact on the AUD/USD’s recovery mode.
In the day ahead, we have a busy calendar across the globe, kicking-off the European session with the German IFO surveys, followed by the UK second estimate GDP figures, Eurozone final CPI and ECB LTRO announcement. The NA session has the Canadian retail sales and US existing home sales data on tap.
Meanwhile, BOE MPC members Shafik and Cunliffe are expected to cross the wires ahead of the US open, followed by Fed’s Powell speech in New York. However, the main risk event for today is likely to be the FOMC minutes, which will provide fresh hints on the central bank’s rate hike prospects.
Main topics in Asia
Australia: Private sector wage growth still slowing – ANZ
David Plank, Head of Australian Economics at ANZ, suggests that while the headline number suggests stabilisation in the Australian Wage Price Index, the private sector measure (ex bonuses) fell to a new record low of 1.8% y/y.
Fed’s Mester: We have to change policy path if economic outlook changes
Additional headlines hit the wires from the Cleveland Fed President Loretta J. Mester, extending her talks on the labour market and fiscal policies.
BOJ’s Kuroda: More easing possible if required to meet price target
BOJ Governor Kuroda is back on the wires now, via Reuters, providing fresh hints on the bank’s monetary policy program going forward.
China home prices: Property curbs are having intended effects - BBG
Bloomberg offers insights into the latest Chinese data release, which showed that home prices in China increased last month in the fewest cities in a year.
Key focus for the week ahead
When is German IFO and how could affect EUR/USD?
The German Ifo surveys are lined up for release later today at 9GMT. The headline Ifo Business Climate Index is expected to edge lower to 109.6 in Feb.
Market movers for the day – Rabobank
Research Team at Rabobank lists down the key market moving events from across the globe for today’s session.
FOMC minutes will not signal a March rate hike - Deutsche Bank
Deutsche Bank chief US economist Joseph LaVorgna provides some clues on what to expect from the release of Fed’s meeting minutes, noting that he does not expect the Fed to signal a hike for March in the minutes.
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