Attention is likely to focus on remarks by BOC Governor McClean following the 0.25% rate hike

Attention is likely to focus on remarks by BOC Governor McClean following the 0.25% rate hike

03.03.2022

In the U.S. currency market yesterday, the dollar index rose slightly to 97.5, driving the U.S. dollar higher. The USD/JPY pair rose from 114.79 to 115.71.However, the dollar weakened against the Canadian dollar, whose policy rate was raised yesterday from 0.25% to 0.5%, with USD/CAD falling from 1.274 to this year’s low of 1.262. Since USD/CAD is showing price action that suggests a triple top formation on the daily chart, we need to carefully assess whether the decline will continue.

European currencies are trading firmly, with the euro gaining ground on expectations that ceasefire talks between Russia and Ukraine will resume today; the euro/yen pair rose by approximately 140 pips from 127.300 to 128.779. However, with cross-yen pairs generally on the rise and the euro/Australian dollar continuing its decline along the 20-period moving average on the hourly chart, we will first be watching the outcome of today’s ceasefire talks.

Today, at 16:30, the Swiss Consumer Price Index; at 18:30, the UK Services PMI; at 21:30, the release of the minutes from the ECB Governing Council meeting and the US Challenger job cuts forecast; at 22:30, US initial jobless claims and US fourth-quarter agricultural labor productivity; at 23:45, the US Services PMI;at 12:00 AM, the US ISM Non-Manufacturing PMI and US Factory Orders; at 12:30 AM, Fed Chair Powell’s Congressional Testimony; at 12:30 AM, US Weekly Natural Gas Inventories; and at 2:45 AM, remarks by BOC Governor Maclean. We will keep an eye on the rise in the US dollar while paying close attention to BOC Governor Maclean’s remarks following the rate hike.