Skip to Content
News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View More
US Dollar Eyeing Powell Speech, Euro May Overlook ECB Minutes

US Dollar Eyeing Powell Speech, Euro May Overlook ECB Minutes

Ilya Spivak,
What's on this page

TALKING POINTS – EURO, ECB, US DOLLAR, POWELL, CANADIAN DOLLAR, BOC, YEN

  • Euro unlikely to find lasting cues in December ECB meeting minutes
  • US Dollar might rise if Fed Chair Powell moderates dovish rhetoric
  • Canadian Dollar down after BOC, Yen up as Japanese stocks decline

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.

See our market forecasts to learn what will drive currencies, commodities and stocks in Q1!

ASIA PACIFIC TRADING SESSION

EUROPEAN TRADING SESSION

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

FX TRADING RESOURCES

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivak on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES