Forex News for 28 Feb, 2023
Amsterdam
February 28, 2023
- The US Dollar is currently the strongest major currency on the Forex market, while the New Zealand Dollar is the weakest.
- The Bank of Japan nominees for governor and deputy governor both emphasised the significance of maintaining Japan’s ultra-loose monetary policy until inflation hits its 2% objective, which has caused the Japanese Yen to weaken.
- Risky assets made a modest comeback yesterday, but the S&P 500 Index closed the day negative after failing to break through the new crucial resistance level at 4018, which is a bearish indicator. The NASDAQ 100 Index, however, ended the day ahead.
- The coming week will be quieter in terms of top-tier economic releases.
- Australia and the eurozone will release CPI figures while Australia and Canada will release GDP figures later today.
- The lack of any other significant dollar catalysts might generate a reaction from the mid-tier US durable goods orders release.
- Canada’s monthly GDP growth figure may disappoint with a flat reading, reminding traders that the BOC is set to pause its tightening cycle soon.
- Australia’s quarterly CPI figure is expected to show a slower pace of price pressures, which could cast doubts on the RBA’s ability to make more rate hikes.
- A preview of Eurozone’s inflation figures could support the ECB’s hawkish views.
- AUD pairs may experience some volatility due to Australia’s quarterly CPI and GDP releases.
- AUD/JPY is showing a rising wedge pattern, and a break lower may happen if inflation and growth figures disappoint.
- Upside surprises could reaffirm the view that the RBA can afford to hike at least a couple more times, leading to a bounce back up to the top of the wedge.
