Investors should remain vigilant regarding policy interest rates and statement releases in the UK and Europe
03.02.2022
- ECB Policy Rate and Statement Release
- Bank of England Announces Policy Rate and Statement
In the previous session, the USD/JPY pair fell by about 60 pips from 114.80 to 114.15, as the Dollar Index edged down to 96.03. The USD/JPY is currently trading around 114.47, attempting to rise just above the 20-period moving average on the hourly chart.The US dollar is also showing weakness against European currencies, with the EUR/USD pair extending its gains for a third consecutive day. It is declining in proportion to the resistance faced by the US 10-year Treasury yield.
Ahead of today’s ECB policy rate announcement, the euro has risen against the U.S. dollar. The euro is currently trading around 1.130 against the dollar. However, against the pound—another European currency—the euro has yet to find a clear direction, with the EUR/GBP pair trading in a range between 0.830 and 0.836.At today’s ECB meeting, given the backdrop of rising inflation, some mention of quantitative tightening (QT) is expected, so we should pay close attention to ECB President Lagarde’s remarks.
Today’s economic indicators include the Eurozone Producer Price Index at 7:00 PM, the Bank of England’s interest rate decision and policy statement at 9:00 PM, remarks by Bank of England Governor Bailey at 9:30 PM, the U.S. Challenger Job Cuts Report, and at 9:45 PM, the EurozoneECB policy rate and statement at 9:30 PM, a press conference by ECB President Lagarde at 10:30 PM, U.S. initial jobless claims and Q4 nonfarm labor productivity at 10:30 PM, U.S. services PMI at 11:45 PM, and U.S. ISM Non-Manufacturing Index and U.S. factory orders at midnight.We will monitor currency strength and weakness while keeping an eye on interest rate trends ahead of the start of U.S. trading hours.
Author: Keisuke Sakurai
