Look ahead: BOJ and RBA interest rate decision; ZEW; Wickes
FX traders are waiting to see if the Bank of Japan will lift interest rates, in a move that would end eight years of sub-zero borrowing costs.
The Reserve Bank of Australia is expected to keep rates on hold, watch out for any comments on inflation. We get the latest German business morale reading and US building permits. Plus, Wickes releases full-year results.
(AI Video Summary)
Bank of Japan to announce interest rates decision
The Bank of Japan (BOJ) is going to announce a decision on interest rates, and some people predict that they might raise rates because wages in Japan have been increasing. This could mean that the BOJ will switch to positive interest rates. There isn't a clear consensus on when this might happen, but most experts believe that rates will go negative by April. The value of the Japanese yen compared to the US dollar has been changing a lot lately, and this will probably depend on what the BOJ decides.
Reserve Bank of Australia to also announce interest rate decision
The Reserve Bank of Australia (RBA) is also making an interest rate decision. Most analysts think that the RBA will keep rates the same, which are currently at 4.35%. Inflation is a concern in many developed countries, including Australia, Canada, and the United States. In Australia, even though costs are easing, inflation is still higher than what the RBA wants, and prices and services aren't falling fast enough.
Important indicators to watch
Germany’s ZEW economic sentiment survey is expected to get better in March, which is part of a positive trend seen over the past eight months.
In the US, important indicators to watch are building permits, housing starts, and API crude oil inventories. In Canada, the consumer price index for February is expected to show a 3.1% increase compared to the previous year, which is higher than the target set.
UK company numbers
In the UK, people are paying attention to the numbers from Close Brothers, Sthree, as well as Wickes, a company that sells DIY and timber. The share price of Wickes has been going up, but it's not clear if it will keep going in that direction. The company is hoping for strong demand in things like flooring and decorating in the next few months.
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