IronFX Daily Commentary by Charalambos Pissouros | 08/02/2017
February 8, 2017 9:52 am
RBNZ likely to stand pat and shift to a more upbeat bias • RBNZ is exp. to take no action. Focus will be on the statement, and Gov. Wheeler’s press conf. • Data have improved since the Nov. meeting. CPI rate for Q4 and 2-year infl. exp. both surged. • As such, the statement may be more optimistic, which could support NZD at the decision. • But beware of the press conf.! Last time, Wheeler jawboned NZD. He said they could intervene. • Thus, the NZD reaction on the decision may be positive, but may reverse if Wheeler repeats this.
BoE’s Forbes says a rate hike may be warranted soon; lifts sterling • BoE policymaker Forbes said that inflation may be accelerating faster than expected. • If that continues, then a rate hike may be an appropriate response. GBP surged. • Although GBP may stay supported from these signals in the near-term, the broader outlook remains cautiously negative (hard Brexit!).
As for the rest of today’s highlights: • UK: Lawmakers will vote again in Parliament on the Article 50 bill and potential amendments. Although some amendments could prove positive for GBP, we are unlikely to see any. • Canada: Housing starts for Jan. but usually not a major market mover.
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RBNZ likely to stand pat and shift to a more upbeat bias
• RBNZ is exp. to take no action. Focus will be on the statement, and Gov. Wheeler’s press conf.
• Data have improved since the Nov. meeting. CPI rate for Q4 and 2-year infl. exp. both surged.
• As such, the statement may be more optimistic, which could support NZD at the decision.
• But beware of the press conf.! Last time, Wheeler jawboned NZD. He said they could intervene.
• Thus, the NZD reaction on the decision may be positive, but may reverse if Wheeler repeats this.
BoE’s Forbes says a rate hike may be warranted soon; lifts sterling
• BoE policymaker Forbes said that inflation may be accelerating faster than expected.
• If that continues, then a rate hike may be an appropriate response. GBP surged.
• Although GBP may stay supported from these signals in the near-term, the broader outlook remains cautiously negative (hard Brexit!).
As for the rest of today’s highlights:
• UK: Lawmakers will vote again in Parliament on the Article 50 bill and potential amendments. Although some amendments could prove positive for GBP, we are unlikely to see any.
• Canada: Housing starts for Jan. but usually not a major market mover.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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