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.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
