The FED statement released yesterday was on the dovish side as widely anticipated, as FOMC members expressed concerns regarding “global economic and financial developments”. Overall though, the USD-Index remained within a relatively small range and ended the day slightly lower. Shortly after, the Reserve Bank of New Zealand held interest rates unchanged, and dropped strong hints of possibly easing in the future by stating “some easing may be needed in the coming year” & “monetary policy will continue to be accommodative” - causing NZDUSD to drop 1.5% from yesterday's highs. Lastly, the strong correlation between USDCAD and oil prices decoupled somewhat yesterday, as WTI futures finished the day over 2% higher, despite inventories surging by the most in 9 months, while USDCAD was in negative territory for the majority of the day and only surged late near the closing of the North American session. Today’s economic calendar begins with the UK publishing preliminary GDP figures, which are forecasted to show that the local economy grew by 0.5% in the 4th quarter. Next, the US will release core durable goods orders which are anticipated to contract by 0.1%, putting a further dark spot on the manufacturing sector. Additionally, weekly unemployment claims from the US have been slowly creeping up, with the 4-week average currently standing at a 6-month high of 285K, though today’s report is expected to show a slight decline to 281K. Lastly, the Bank of Japan will announce monetary policy early tomorrow morning near the second half of the Asian trading session, with the majority expecting no change yet dovish comments from BOJ Governor Kuroda during the press conference. |
