All Eyes on BOC Governor McClemm’s Remarks Following the 0.25% Rate Hike
03.03.2022
- U.S. ISM Non-Manufacturing Purchasing Managers' Index
- Remarks by BOC Governor McClem of Canada
In the U.S. currency market the previous day, 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 U.S. dollar weakened against the Canadian dollar, whose policy rate was raised yesterday from 0.25% to 0.5%, and USD/CAD fell from 1.274 to 1.262, its lowest level this year.Since the USD/CAD pair is showing price action that suggests it may be forming a triple top on the daily chart, we need to carefully assess whether the decline will continue.
Among European currencies, the euro has been trading firmly on expectations that ceasefire talks between Russia and Ukraine will resume today, with the euro/yen pair rising by about 140 pips from 127.300 to 128.779.However, with cross-yen pairs generally on the rise and the EUR/AUD continuing its decline along the 20-period moving average on the hourly chart, we will first focus on the outcome of today’s ceasefire talks.
Today, the Swiss Consumer Price Index will be released at 16:30, the UK Services PMI at 18:30, and the Eurozonepublication of the ECB Governing Council minutes, U.S. Challenger planned layoffs, at 10:30 p.m. U.S. initial jobless claims, U.S. fourth-quarter agricultural labor productivity, at 11:45 p.m. U.S. services PMI,at 24:00, the U.S. ISM Non-Manufacturing Index and U.S. Manufacturing Orders Index, as well as Fed Chair Powell’s congressional testimony; at 24:30, U.S. weekly natural gas inventories; and at 26:45, remarks by BOC Governor Macleem.We will keep an eye on the rise in U.S. currencies while paying close attention to remarks by Bank of Canada Governor McClem following the rate hike.
Author: Keisuke Sakurai
