Week's main events (February 20– February 24)

The FOMC meeting minutes will be in focus this week amid renewed uncertainty about how high-interest rates might eventually rise in the central bank's fight against inflation. Traders will also focus on the RBNZ's interest rate decision on Wednesday. Most analysts believe the Central Bank of New Zealand will increase the rates by 0.50%. A strengthening of the national currency usually accompanies a rate hike. Also, the focus of traders will be inflation data from the Eurozone and Japan. The speech of the new Governor of the Bank of Japan will give more information about his stance on monetary policy. It also should be noted that at the end of this week, February 24 will be the anniversary of Russia's invasion of Ukraine, which could bring additional surprises in the form of new escalations.

Monday, February 20
Since Monday will be a bank holiday in the United States and Canada, volatility in the financial markets will be lower than usual. China will release PBoC Prime Rate, which is essential to Asian indices.
Main events of the day:
  • – China PBoC Prime Rate (m/m) at 03:15 (GMT+2).
  • – Eurozone Consumer Confidence (m/m) at 17:00 (GMT+2);
  • – New Zealand Producer Price Index (q/q) at 23:45 (GMT+2).
Tuesday, February 21
Tuesday will bring various Manufacturing PMI and Services PMI statistics for many countries. These data reflect well the dynamics of the domestic sectors of the economy. Also in the spotlight will be inflation data in Canada. Inflationary pressures are expected to decrease.
Main events of the day:
  • – Australia Manufacturing PMI (m/m) at 00:00 (GMT+2);
  • – Australia Services PMI (m/m) at 00:00 (GMT+2);
  • – Japan Manufacturing PMI (m/m) at 02:30 (GMT+2);
  • – Japan Services PMI (m/m) at 02:30 (GMT+2);
  • – French Manufacturing PMI (m/m) at 10:15 (GMT+2);
  • – French Services PMI (m/m) at 10:15 (GMT+2);
  • – German Manufacturing PMI (m/m) at 10:30 (GMT+2);
  • – German Services PMI (m/m) at 10:30 (GMT+2);
  • – Eurozone Manufacturing PMI (m/m) at 11:00 (GMT+2);
  • – Eurozone Services PMI (m/m) at 11:00 (GMT+2);
  • – UK Manufacturing PMI (m/m) at 11:30 (GMT+2);
  • – UK Services PMI (m/m) at 11:30 (GMT+2);
  • – Germany ZEW Economic Sentiment (m/m) at 12:00 (GMT+2);
  • – Canada Consumer Price Index (m/m) at 15:30 (GMT+2);
  • – Canada Retail Sales (m/m) at 15:30 (GMT+2);
  • – US Manufacturing PMI (m/m) at 16:45 (GMT+2);
  • – US Services PMI (m/m) at 16:45 (GMT+2);
  • – US Existing Home Sales (m/m) at 17:00 (GMT+2).
Wednesday, February 22
On Wednesday, investors will focus on the New Zealand RBNZ Interest Rate Decision and FOMC meeting minutes. Analysts expect New Zealand's Central Bank may raise interest rates by 0.5% at the current meeting. Volatility in currency pairs with the New Zealand dollar will increase. The FOMC minutes may give investors some indication of the appetite for a larger increase at the upcoming March Fed meeting, following recent comments from some policymakers indicating support for such a move.
Main events of the day:
  • – Australia Wage Price Index (m/m) at 02:30 (GMT+2);
  • – New Zealand RBNZ Interest Rate Decision at 03:00 (GMT+2);
  • – New Zealand RBNZ Monetary Policy Report at 03:00 (GMT+2);
  • – New Zealand RBNZ Press Conference at 04:00 (GMT+2);
  • – German Consumer Price Index (m/m) at 09:00 (GMT+2);
  • – German IFO Business Climate (m/m) at 11:00 (GMT+2);
  • –– US FOMC Meeting Minutes at 21:00 (GMT+2).
Thursday, February 23
The US GDP for the quarter and Eurozone Consumer Price Index will be at the center of investors' attention on Thursday. Analysts expect to see an increase in US GDP by 2.9%. But in the Eurozone, inflation is expected to rise again, which may cause increased volatility in currency pairs with the euro. Market participants should also pay attention to the US Initial Jobless Claims, which the Fed closely monitors. It's a bank holiday in Japan.
Main events of the day:
  • – US FOMC Member Williams Speaks at 00:30 (GMT+2);
  • – Singapore Consumer Price Index (m/m) at 07:00 (GMT+2);
  • – Eurozone Consumer Price Index (m/m) at 12:00 (GMT+2);
  • – US Initial Jobless Claims (w/w) at 15:30 (GMT+2);
  • – US GDP (q/q) at 15:30 (GMT+2);
  • – US Natural Gas Reserves (w/w) at 17:30 (GMT+2).
  • – US FOMC Member Bostic Speaks at 17:50 (GMT+2);
  • – US Crude Oil Reserves (w/w) at 18:00 (GMT+2).
Friday, February 24
The most important Friday release is the US PCE price index (Personal Income and Spending), which is also on the Fed's list of inflation indicators. Germany will publish the GDP data for the quarter. Inflation data in Japan should also be closely monitored by investors, especially given the appointment of a new governor of the Bank of Japan.
Main events of the day:
  • – Japan National Core CPI (m/m) at 01:30 (GMT+2);
  • – German GDP (q/q) at 09:00 (GMT+2);
  • – Switzerland Employment Rate (m/m) at 09:30 (GMT+2);
  • – French GDP (q/q) at 09:45 (GMT+2);
  • – US PCE price index (m/m) at 15:30 (GMT+2);
  • – US Michigan Consumer Sentiment (m/m) at 17:00 (GMT+2);
  • – US New Home Sales (m/m) at 17:00 (GMT+2);
  • – US FOMC Member Mester Speaks at 17:15 (GMT+2).

by JustMarkets, 2023.02.20

We advise you to get acquainted with the daily forecasts for the major currency pairs.

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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