A Week in the Market: Attention to Rhetoric and Numbers (20-24 February)
This week is unlikely to bring unexpected news and decisive changes, but it will require market participants to pay close attention to policy signals and the release of some data.
EUR: hope for support
There will be plenty of European statistics this week, both for individual countries and the Eurozone. The February services and manufacturing business activity index is worth a look - it might be a bit stronger than the previous figures. A strong report will support the EUR position.
NZD: attention to the RBNZ
The Reserve Bank of New Zealand continues to raise the interest rate in line with its announcement. The RBNZ is meeting this week and is likely to decide on an annual rate increase from 4.25% to 4.75%. For the NZD rate, the stability and consistency of the central bank will be good support.
USD: Fed minutes
The US Federal Reserve will release the minutes of its previous meeting, in which investors will be looking for indications and hints about the next fiscal moves, as usual. The topic of future interest rates is now a major one for the capital markets and is contributing to the strength of the USD.
JPY: inflation will give a signal
Japan will release statistics on the Tokyo core consumer price index for February - the indicator is leading the overall inflation rate. The indicator is expected to rise, which could pressure the JPY exchange rate.
G-20 summit: discussing global issues
A new G-20 summit opens on Wednesday. Important decisions are rarely taken during such events, which are more about expressing intentions and discussing important issues. If the summit proceeds without surprises, risk assets will not be threatened.