Poor US data, slow vaccine distribution, rising virus cases worsened the market sentiment and underpinned safe-haven currencies like the USD, and JPY.
NZD in focus of traders’ attention
The Reserve Bank of New Zealand will make the monetary policy statement on June 24 at 5:00 MT time.
Instruments to trade: NZD/USD, NZD/CHF, NZD/JPY
The monetary policy statement is the primary tool the RBNZ uses to communicate with investors. Authorities unveil their decision on interest rates and set guidelines for the economic development. In the middle of March, the RBNZ cut its interest rate to the record low of 0.25%. This time analysts highly expect that rates won’t be changed. It will be more important to know what economic outlook the RBNZ will give and what measures it will take to support the economic recovery.
- If the RBNZ eases its policy, the NZD will weaken;
- If the RBNZ keeps the policy unchanged, the NZD will strengthen.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.
Jump in to know the key market events and trading ideas for this week!
The Canadian central bank will make a monetary policy report and announce interest rates on Wednesday, January 20, at 17:00 MT time. Also, the BOC press conference will be held later.
USD’s rally takes a pause, while riskier assets are modestly rising.