Forex News for 24 Feb, 2023
February 24, 2023
- The upcoming US Core PCE Price Index data is a crucial market catalyst for USD/JPY as investors wait to see if it can cause a breakout or keep the pair range-bound. Analysts predict a slight uptick from 0.3% to 0.4%, which could support tightening efforts.
- The recent downgrade of the US preliminary GDP reading for Q4 2022 from 2.9% to 2.7% could dampen investor sentiment and market volatility which could affect the US economy and the broader financial market.
- RBNZ Governor emphasizes 75bps rate hike dependent on significant inflation shock.
- The increase in Japan’s national core CPI from 4.0% y/y to 4.2% vs. 4.3% forecast could lead to a more hawkish stance on monetary policy by the Bank of Japan.
- Limited support for 50bps rate hike among FOMC participants revealed in meeting minutes.
- The rise in the UK GfK consumer climate index from -45 to -38 vs. -43 forecast in Feb could boost consumer confidence and support the UK economy. This could lead to increased investor sentiment towards the pound and boost the UK financial market.
- Morgan Stanley increases 2023 oil demand growth projection by 36%, warns of Russia risk.
- The downgrade of Germany’s final GDP to show a 0.4% quarterly contraction from the previous -0.2% reading could affect investor confidence in the Eurozone and lead to market volatility.
- This downgrade could have a ripple effect on the broader financial market and affect investor sentiment towards the Euro.