FX traders await central bank decisions for fresh impetus
The currency market is likely to react to a few announcements from central banks scheduled for this week, including from the Reserve bank of New Zealand, the Bank of Canada and European Central Bank.
US Federal Reserve meeting minutes will also be closely monitored on Wednesday, as IGTV’s Angela Barnes explains.
(AI Video Summary)
Reserve Bank of New Zealand
The financial discourse revolves around impending central bank announcements affecting currency markets. Key points include the Reserve Bank of New Zealand maintaining its official cash rate at 5.5%, influencing the New Zealand dollar's weakening position against the US dollar and Australian dollar. Similarly, the Bank of Canada is expected to keep its overnight rate at 5%.
European Central Bank
Attention is also directed toward the Federal Reserve's meeting minutes and the European Central Bank (ECB)'s interest rate decision, which is anticipated to hold the main refinancing rate at 4.5%, with a significant majority of economists predicting a rate cut in the ECB's June meeting. The euro has slightly declined against the US dollar following positive US employment data, with markets awaiting upcoming data releases for direction.
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