Forex View:
A Choppy Trading Week with All Eyes Looking Ahead
A light US economic calendar next week leaves traders
with little to focus on until the next major inflation
gauge, the Feb 29 release of the key PCE report said to
be the Fed’s favoured inflation indicator. In this regard, I
heard an early estimate of core PCE at 0.43% vs. 0.2% in
the prior month.
Week Ahead
With China returning from its week long Lunar New Year
break and the US celebrating Presidents Day on Monday,
traders are left to digest hotter US inflation CPI and PPI)
released this past week vs. weaker retail sales and a still
buoyant jobs market.
With most central banks singing the same cautious rate
cut song, the Fed is not the only game in town but
attracts the most attention as forex traders stay fixated
on movements in US bond yields.
This sets the stage for what appears to be setting up as a
choppy week where, in the absence of key US data,
attention will likely be on central bank speakers and
economic data releases elsewhere.
Otherwise, trading will likely continue to be driven by
rate cut expectations reflected by movements in US bond
yields.
As for the FOREX trends, watch the Forex Forum
for latest updates and market insights.
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