At 13:30 GMT, the US government released the monthly Consumer Price Index data. US month-on-month inflation was revealed to be higher than forecast, as the CPI came in at 0.6% instead of 0.4% The value of the US Dollar immediately surged, as the higher than expected inflation strengthened the case of the US Federal Reserve for monetary tightening. Namely, hiking interest
There will be one notable event during the week. On Thursday, the publication of the US Consumer Price Index and US Core Consumer Price Index data at 13:30 GMT is set to impact the value of the US Dollar. Note that at the same time, the weekly US Unemployment Claims will be published. Meanwhile, crude oil traders are set to watch the
On Thursday, at 12:45 GMT, the European Central Bank published its Main Refinancing Rate and Monetary Policy Statement. In general, the bank kept its rate at 0.00%, but revealed that it would end its quantitative easing policy. Quoting the statement: "In the first quarter of 2022, the Governing Council is conducting net asset purchases under the PEPP at a
On February 3, the Bank of England published its Monetary Policy Summary. The bank hiked its interest rate by 0.25% to 0.50%. In addition, the central bank Monetary Policy Committee voted unanimously to start to reduce its stock of bonds. Namely, the bank is starting quantitative tightening. Quoting the statement: "At its meeting ending on 2 February 2022, the
On February 2, the Reserve Bank of Australia revealed its future monetary policy by issuing a statement. In general, the bank revealed that it would end its quantitative easing program via bond buying. Meanwhile, interest rates were left unchanged. Quoting the statement: "At its meeting today, the Board decided to maintain the cash rate target at 10 basis points and
This week, the central banks of Australia, the United Kingdom and the European Union are set to reveal their monetary policy by issuing statements and setting interest rates. The Reserve Bank of Australia is set to publish its interest rate on Tuesday at 03:30 GMT. On the same day, at 13:30 GMT, the Canadian GDP data will be released. Also on
On Thursday, the United States Advance quarterly GDP was revealed to be at 6.9% instead of the market consensus forecast of 5.3%.The event fuelled the already ongoing surge of the US Dollar against other currencies. The EUR/USD reacted with a 22 base point or 22 base point decline in only ten minutes.
On January 26, the US Federal Reserve Federal Open Markets Committee issued a monetary policy statement. In general, the bank announced that it would finish monthly bond-buying taper in early March, it would soon be appropriate to raise the Federal Funds Rate and US economy is improving, but the pandemic is still having an impact. Quoting the statement: "Indicators of
On January 26, the Bank of Canada made a Rate Statement. In general, the bank kept its Overnight Rate at 0.25% and is set to keep its investments in government bonds constant. However, the markets could have reacted to the news that the bank would remove its exceptional forward guidance on its policy interest rate. Quoting the statement:
The week's notable scheduled events are set to start on Wednesday at 07:00 GMT. At that time, the UK Consumer Price Index could cause moves on GBP charts. Later on, at 13:30 GMT, the Canadian Consumer Price Index is set to be published. On Thursday, the US weekly Unemployment Claims at 13:30 GMT could cause a minor USD move. Afterwards, at 16:00
On Wednesday, at 13:30 GMT, the US Consumer Price Index and Core Consumer Price index data was released. The USD reacted by declining. For example, the EUR/USD rate jumped 40 base points in the ten minutes following the release. The data beat the forecasts, as the US CPI came in at 0.5% instead of the forecast 0.4%. Meanwhile, the
The top data set of the week will be released on Wednesday at 13:30 GMT. At that time, the US Consumer Price Index and Consumer Price Index are set to be published. Later on, at 15:30 GMT, the US Energy Information Administration would publish its weekly US Crude Oil Inventories. On Thursday, at 13:30 GMT, the US Producers Price Index and
On Friday, at 13:30 GMT, US monthly employment data was published. At the moment of the release, the data caused an USD volatility increase. The EUR/USD shortly fluctuated in a 25 base point range. The volatility was caused by mixed data, as the initial jump of the rate could be attributed to the worse than forecast Non-Farm Employment Change numbers
On Thursday, at 17:00 GMT the US ISM Services PMI caused US Dollar volatility, as immediately after the release of the worse than forecast data USD dropped and recovered. The EUR/USD increased its volatility to 16 base points or 0.14%. The Purchasing Managers Index survey results came in at 62.0 points instead of the forecast 67.0 points. In theory, the data
At 19:00 GMT on Wednesday, the value of the US Dollar increased due to the publication of the Federal Open Market Committee Meeting Minutes. The strengthening occurred gradually during a period of thirteen minutes, as the market participants read the publication and realized that the monetary policy makers were more hawkish than previously thought. The EUR/USD currency exchange rate reacted
The most notable event of the week will be the US and Canadian monthly employment data release on Friday at 13:30 GMT. However, some might argue that the FOMC Meeting Minutes release on Wednesday at 19:00 GMT might cause a larger move. However, historical data of immediate reactions shows that it is not the case. In the meantime, take into account
On December 17, the Bank of Japan published its Monetary Policy Statement. The bank kept its interest rate at -0.10% and extended the non-government covid relief loan program. Quoting the statement: "Financial conditions in Japan have improved on the whole, despite the continued significant impact of the novel coronavirus (COVID-19) on domestic and overseas economies. With regard to financial conditions
The week is set to be quiet. The only event, which could cause a notable move, is the Canadian GDP publication on Thursday at 13:30 GMT. Prior to Thursday, on Tuesday, a minor CAD move could occur due to the Canadian Retail Sales data at 13:30 GMT. On Wednesday, at 13:30 GMT, the US Dollar might react to the publication of the
On December 16, the European Central Bank published its monetary policy decisions. The central bank kept its interest rates unchanged. However, the bank would reduce asset purchases of the pandemic emergency purchase programme. Quoting the official release: "The Governing Council decided to extend the reinvestment horizon for the PEPP. It now intends to reinvest the principal payments from maturing
On December 16, the Bank of England unexpectedly hiked interest rates and caused a surge of the GBP against peer currencies. Meanwhile, corporate and government bond purchases would remain unchanged. Quoting the Assessment: "At its meeting ending on 15 December 2021, the MPC voted by a majority of 8-1 to increase Bank Rate by 0.15 percentage points, to 0.25%. The Committee
On December 16, the Swiss National Bank published its Monetary Policy Assessment. In general, the bank kept its policy unchanged. The deposit rate would remain -0.75% and the bank would intervene into forex markets to push the value of the Swiss Franc down. Quoting the Assessment: "The SNB is maintaining its expansionary monetary policy. It is thus ensuring price
On December 15, the US Federal Reserve published its FOMC Statement and Economic Projections. In general, the federal funds rate remained unchanged. However, the bank announced that it would decrease its monthly treasury purchases by $20 billion and mortgage backed securities purchases by $10 billion. Quoting the statement: "With progress on vaccinations and strong policy support, indicators of economic activity
On Wednesday, at 13:32 GMT, the Canadian Consumer Price Index was published. The inflation measure hit the forecast of 0.2%. Due to that reason, the market reaction was muted, as the USD/CAD surged only 17 base points or 0.13%.
At 13:30 GMT on Wednesday, the publication of the US Retail Sales caused a drop of the USD value. The EUR/USD surged 13 base points or 0.12% in the first five minutes after the data release. Retail sales had increased in November by 0.3%, compared to the forecast of 0.8%. Meanwhile, Core Retail Sales also came in at 0.3% instead