Forex News for 24 Feb, 2023

February 24, 2023
  • Investors are awaiting the US Core PCE Price Index data to determine whether it will spur a breakout for USD/JPY or remain range-bound.
  • The US preliminary GDP reading for Q4 2022 has been downgraded from 2.9% to 2.7%, indicating a slower economic growth rate.
  • Japan’s national core CPI increased from 4.0% y/y to 4.2% vs. 4.3% forecast, reflecting a rise in consumer prices. This could lead to the Bank of Japan taking a more hawkish stance on monetary policy.
  • Morgan Stanley flags Russia risk, ups 2023 oil demand growth estimate by 36%.
  • The UK GfK consumer climate index improved from -45 to -38 vs. -43 forecast in Feb, indicating a rise in consumer confidence.
  • FOMC meeting minutes reveal some participants support a 50bps rate hike.
  • Germany’s final GDP has been downgraded to show a 0.4% quarterly contraction from the previous -0.2% reading, indicating weaker economic growth.
  • This could lead to decreased investor confidence in the Eurozone and affect market volatility.
  • The RBNZ Governor would take significant inflation shock to support 75bps rate hikes.
Author Amsterdam