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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD comes under pressure near 1.0630
Further gains in the Greenback encourage sellers to maintain their control over the risk complex, forcing EUR/USD to retreat further and revisit the 1.0630 region as the US session draws to a close.
GBP/USD retreats toward 1.2450 on modest USD rebound
GBP/USD edges lower in the second half of the day and trades at around 1.2450. Better-than-expected Jobless Claims and Philadelphia Fed Manufacturing Index data from the US provides a support to the USD and forces the pair to stay on the back foot.
Gold is closely monitoring geopolitics
Gold trades in positive territory above $2,380 on Thursday. Although the benchmark 10-year US Treasury bond yield holds steady following upbeat US data, XAU/USD continues to stretch higher on growing fears over a deepening conflict in the Middle East.
Ripple faces significant correction as former SEC litigator says lawsuit could make it to Supreme Court
Ripple (XRP) price hovers below the key $0.50 level on Thursday after failing at another attempt to break and close above the resistance for the fourth day in a row.
Have we seen the extent of the Fed rate repricing?
Markets have been mostly consolidating recent moves into Thursday. We’ve seen some profit taking on Dollar longs and renewed demand for US equities into the dip. Whether or not this holds up is a completely different story.