Greenback Fell, Jerome Powell's and Theresa May's Speeches Eyed

Market Reviews

The greenback has strongly declined. Fed Chair Jerome Powell’s speech will catch a spotlight and it might even provide the currency with a boost. Fed published its semi annual Monetary Policy Report, which marked an optimistic inflation expectations and concerns about increased pressures from a valuation of asset prices. Loonie is weak as NAFTA negotiations will restore this week. Australian dollar and New Zealand dollar, on the other hand, have reinforced. Euro has slightly lowered as Italy is having its election and Germany is voting on reforming the Grand coalition. Today’s data marks British BBA mortgage approvals and US new home sales.

On Friday, Britain’s Prime Minister Theresa May will deliver a speech on Brexit, in which she will unveil all the plans concerning the UK-EU relationship. May said her view will be “ambitious”. Investors expect that Bank of England will execute a rate hike in May. But, PM’s speech might change the expectations.

Haruhiko Kuroda (BoJ Governor) refuses to consider changing the policy framework. He said: "it's unfortunate that achievement of our price target has been delayed. But thanks to the effect of our powerful monetary easing, Japan's economy is no longer in a state that can be described as deflation". He added: "I don't have any plan at this stage to conduct another comprehensive review."