A Week in the Market: Calm is Key (21 – 25 November)
This week could be a relatively quiet one for the currencies, but it is worth keeping an eye on oil prices and the rhetoric of the Fed officials.
EUR: attention to ECB reports
The ECB's tightening policy will have a positive effect on the EUR. The Eurozone will publish the November business activity indexes for the manufacturing and services sectors. Attention should be drawn to the reports of the previous European Central Bank meeting, as they may contain information on future fiscal moves.
NZD: rate hike continues
The Reserve Bank of New Zealand will meet and decide on the interest rate, which will likely rise from the current 3.5% per year. The RBNZ has previously stated its intention to raise the rate to gradually combat global inflation. For the NZD exchange rate, this is a favourable action.
USD: demand will continue
The US is preparing to release its real estate market data for October, and the parameters for durable goods orders. These reports will help to understand the structure of consumer spending. Demand for the USD could remain up-to-date.
JPY: avoiding devaluation
Japan will release the Tokyo core consumer price index, which is a leading indicator of the general inflation trend. The JPY has so far managed to avoid a return to devaluation, but this is likely to be temporary.
CAD: oil prices are important
Canada will provide information on its retail sales and publish the housing price index. However, the focus will be on the behaviour of the US dollar, and the commodity price movements. Weakness in oil will put pressure on the CAD.