Forex Analysis for Thursday 2nd March 2017
Wednesday: BOC kept Overnight Rate unchanged at 0.50%. The BOC continue to look through the inflation data, citing the core rates pointing to material excess capacity in the economy. Job gains and subdued wage growth reflect ‘persistent’ economic slack, so everything points to rates on hold for longer.
RBNZ Governor Wheeler stated that risks around future rate movements as equally balanced and added the RBNZ is comfortable with current economic projections. (Newswires)
The Fed’s preferred measure of inflation, Core PCE Price Index m/m was as per expectation at 0.3%.
UK PM Theresa May loses vote in Lords with adoption of amendment to safeguard EU nationals.
The USD rose and global equities soared after Trumps speech to Congress and expectations of a March rate hike. As expected the JPY weakened. The Euro continued to rise and the GBP fell on the Article 50 setback suffered by the UK government.
Today sees CAD GDP m/m.
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