Broadbent Speaks, MPC Member – (Monday December 6)
Bank of England Deputy Governor Ben Broadbent is due to speak on the outlook for growth, inflation and monetary policy at the University of Leeds, England. Members of the BOE MPC vote on where to set the country’s main interest rates, and their public appearances are frequently used to convey subtle clues about future monetary policy. Questions from the public are expected, therefore any unusual policy response usually triggers price action. Pay attention to GBP / USD.
RBA Monetary Policy Cash Rate – (Tuesday, December 7)
The Reserve Bank of Australia (RBA) will release the monetary policy decision on Tuesday. Short-term interest rates are the most important element in the value of the currency; most of the other indicators are only used to forecast the future development of rates. At its November meeting, the Reserve Bank of Australia abolished the 0.1% government bond yield target of April 2024 and abandoned its previous projection that rates would not rise. not before 2024. the 12th consecutive month while continuing to buy government bonds at a rate of AU $ 4 billion per week until at least mid-February 2022. Pay attention to AUD / USD.
BoC’s overnight monetary policy rate – (Wednesday, December 8)
The Bank of Canada (BoC) will release the monetary policy decision on Wednesday. Short-term interest rates are the most important element in the value of the currency; most of the other indicators are only used to forecast the future development of rates. In October, the Bank of Canada elected to conclude its quantitative easing program and enter the reinvestment phase, in which it will only buy Government of Canada bonds to replace maturing bonds.
The central bank also maintained its expected overnight rate target of 0.25% and expects borrowing costs to remain at current levels through the mid-quarters of 2022, as opposed to earlier forecasts. of the second half of next year. Pay attention to USD / CAD.
RBA Gov Lowe Speaks – (Thursday, December 9)
Reserve Bank of Australia Governor Philip Lowe is expected to speak at the Australian Payments Network virtual summit. As the head of the central bank, which regulates short-term interest rates, he has the most impact on the value of the country’s currency. Traders pay close attention to its public appearances as they are frequently used to give subtle clues about future monetary policy. Lowe will expect questions from the public and investors will be looking for other clues about monetary policy to come. Pay attention to AUD / USD Price action.
United States CPI m / m – (Friday December 10)
Most of the headline inflation is attributable to consumer prices. Inflation is crucial for the valuation of currencies because rising prices force the central bank to raise interest rates in order to comply with its mandate to control inflation. In the United States, the CPI consumer price index rose to 276.72 points in October, from 274.14 points in September 2021. The annual inflation rate in the United States reached 6.2% in October, highest since November 1990 and above estimates. by 5.8%, as supply chain challenges such as port congestion, shortages of equipment and labor, rising energy costs and wage increases weighed on.
The Bureau of Labor Statistics is expected to release figures for the Consumer Price Index (PPI) on Friday. Generally, a lower CPI is considered bad for the US dollar, and vice versa. The numbers tend to have a negative impact on the dollar and positive on precious metals like Gold which trade the reverse of the dollar.
It’s all for this week !
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