Central Bank Commentary to Provide Spark for USD, GBP, CAD
- BoE's Carney, Weale testify on hawkish terms, keep GBP lifted.
- USDCAD breakout taking shape ahead of Poloz, Yellen.
- Canadian, US data and events are in spotlight for FX traders this week.
Central bankers from the G7 are out on the wires all day today, updating market participants on rate expectations as we enter a policy-sensitive stretch of time. At the time of writing, the Bank of England's Governor Mark Carney and Martin Weale were testifying in front of Parliament, throwing their support behind the recently optimistic and implicitly hawkish Quarterly Inflation Report, further supporting the British Pound.
Later today, the Bank of Canada's Stephen Poloz will have an opportunity to shape rate expectations for the March 4 policy meeting at a speech in Ontario. While a less formal setting that of his counterparts, recent negative developments surrounding the Canadian economy make his upcoming comments just as poignant.
Capping the day, of course, is Fed Chair Janet Yellen's remarks at the Humphrey-Hawkins testimony. In light of three-months jobs growth exceeding 1 million, Chair Yellen has an opportunity to shed new perspective on the Fed's views of the economy, considering the recent set of FOMC minutes were from the reporting period before the January jobs data were released. A cautious hawkish approach could be the catalyst to finally see the US Dollar break its recent consolidation.
--- Written by Christopher Vecchio, Currency Strategist
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