US Dollar Eyeing Powell Speech, Euro May Overlook ECB Minutes

Minutes from December’s ECB policy meeting headline an otherwise lackluster economic calendar in European trading hours. The release may not offer much by way of directional guidance for the Euro considering markets have already priced out an interest rate hike in 2019.

Later in the day, the spotlight turns to scheduled comments from Fed Chair Jerome Powell. A dovish surprise seems unlikely considering the extent to which the markets’ policy bets have already shifted in that direction, especially after yesterday’s FOMC minutes publication.

Balanced rhetoric suggesting the central bank’s recent pronouncements were meant to signal the absence of pre-commitment rather than an abandonment of tightening altogether might catch markets wrong-footed, however. That might trigger a rebound in the US Dollar.

CANADIAN DOLLAR DOWN AFTER BOC, YEN UP AS JAPAN STOCKS FALL

The Canadian Dollar underperformed in Asia Pacific trade, sliding against all its major counterparts. The move seems to reflect ebbing BOC rate hike expectations following cautious rhetoric accompanying yesterday’s monetary policy announcement. The anti-risk Yen rose as stocks in Japan declined.

ASIA PACIFIC TRADING SESSION

US Dollar Eyeing Powell Speech, Euro May Overlook ECB Minutes

EUROPEAN TRADING SESSION

US Dollar Eyeing Powell Speech, Euro May Overlook ECB Minutes

 

** All times listed in GMT. See the full economic calendar here.

Disclosure: Do you want to see how retail traders are currently trading the US Dollar? Check out our IG Client Sentiment ...

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