IronFX Daily Commentary by Charalambos Pissouros | 09/03/2016
March 9, 2016 10:01 am
Two major central bank meetings: What to watch • BoC is likely to stand pat today • Bank of Canada is expected to remain on hold and wait for the upcoming fiscal budget. • Inflation is in line with target and oil prices have stabilized, so a move is unlikely. • Reaction in CAD may be determined by the tone of the statement. No press conference.
• But the RBNZ could surprise • Expectations are for the Bank to remain on hold and signal a strong easing bias. • However, due to near-zero inflation, falling inflation expectations and dairy prices, we believe the Bank is likely to cut rates today. • If the Bank acts like we expect, NZD/USD could plunge on the decision.
Overnight: Chinese stocks down as commodities drop • Shanghai Composite 300 closed -1.15%, led by losses in energy and commodity firms. • The tumble in commodity prices could negatively affect European stocks today as well.
Today: • UK: Industrial output for Jan. is exp. to rise. This could prove GBP-positive. • US: Wholesale inventories for Jan. • Speakers: RBNZ Governor Wheeler holds a press conference after rate decision.
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Two major central bank meetings: What to watch
• BoC is likely to stand pat today
• Bank of Canada is expected to remain on hold and wait for the upcoming fiscal budget.
• Inflation is in line with target and oil prices have stabilized, so a move is unlikely.
• Reaction in CAD may be determined by the tone of the statement. No press conference.
• But the RBNZ could surprise
• Expectations are for the Bank to remain on hold and signal a strong easing bias.
• However, due to near-zero inflation, falling inflation expectations and dairy prices, we believe the Bank is likely to cut rates today.
• If the Bank acts like we expect, NZD/USD could plunge on the decision.
Overnight: Chinese stocks down as commodities drop
• Shanghai Composite 300 closed -1.15%, led by losses in energy and commodity firms.
• The tumble in commodity prices could negatively affect European stocks today as well.
Today:
• UK: Industrial output for Jan. is exp. to rise. This could prove GBP-positive.
• US: Wholesale inventories for Jan.
• Speakers: RBNZ Governor Wheeler holds a press conference after rate decision.
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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