This week’s market events:
Stay informed and prepared with the following updates
JPY BoJ Interest Rate Decision:
The Bank of Japan (BoJ) announces its interest rate decision after each of the Bank’s eight scheduled annual meetings. Generally, if the BoJ is hawkish about the inflationary outlook of the economy and raises interest rates it is bullish for the Japanese Yen (JPY). Likewise, if the BoJ has a dovish view on the Japanese economy and keeps interest rates unchanged, or cuts them, it is usually bearish for JPY.
CAD Consumer Price Index (YoY)(Feb):
The Consumer Price Index (CPI), released by Statistics Canada on a monthly basis, represents changes in prices for Canadian consumers by comparing the cost of a fixed basket of goods and services. The YoY reading compares prices in the reference month to the same month a year earlier. Generally, a high reading is seen as bullish for the Canadian Dollar (CAD), while a low reading is seen as bearish.
USD Fed Interest Rate Decision:
The Federal Reserve (Fed) deliberates on monetary policy and makes a decision on interest rates at eight pre-scheduled meetings per year. It has two mandates: to keep inflation at 2%, and to maintain full employment. Its main tool for achieving this is by setting interest rates – both at which it lends to banks and banks lend to each other. If it decides to hike rates, the US Dollar (USD) tends to strengthen as it attracts more foreign capital inflows. If it cuts rates, it tends to weaken the USD as capital drains out to countries offering higher returns.
CHF SNB Press Conference:
The Swiss National Bank (SNB), led by the Chairman of the Governing Board, holds a press conference after each of its quarterly meetings, held in March, June, September and December, when it takes decisions on interest rates and formulates economic forecasts for the future. The press conference has two parts – first a prepared statement is read out, then the conference is open to questions from the press. The questions often lead to unscripted answers that create market volatility. Hawkish comments tend to boost the Swiss Franc (CHF), while a dovish message tends to weaken it.
