The market is resilient ahead of the speeches of Fed’s Powell and ECB President Lagarde, but there are still interesting movements.
Should we expect more easing by the RBNZ?
The Reserve Bank of New Zealand (RBNZ) will publish the monetary policy statement and announce the interest rate at 05:00 MT time on May 13.
Instruments to trade: NZD/USD, NZD/CHF, NZD/JPY
Each quarter, the regulator conducts a meeting where its policymakers discuss current economic stance and forecasts for upcoming quarters. Based on that they reveal tools for supporting an economy of the country in the monetary policy statement, including an update on the interest rate. In the middle of March, the RBNZ cut its interest rate to the record low of 0.25%. Analysts suggest that the global uncertainties and widespread weakness amid the pandemic may push the bank to cut the interest rates to negative levels. Also, we may expect more easing to be introduced this week.
• If the RBNZ eases its policy, the NZD will weaken;
• If the RBNZ keeps the policy unchanged, the NZD will strengthen.
The US monthly CPI is announced on Tuesday at 15:30 MT time.
The Federal Open Market Committee (the department of the Federal Reserve) will publish the meeting minutes on October 7 at 21:00 MT time.
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