VIX: $20.95 19/3/21
Important fundamental releases: 22nd to 26th March 2021
- 04:15 am Wed 24th Mar EUR PMI
- -:– am Fri 26th Mar EUR Euro Summit
Latest Central Bank statements:
USD FOMC: 27th January 2021
- Economic activity and employment has been rising at a moderate rate. Job gains have been solid. Unemployment rate has remained low.
- Household spending has been rising at a moderate pace, business fixed investment and exports remain weak.
- IR: Maintain current rate 0 to 0.25%. Will maintain target range until labor market conditions have reached levels consistent with the committee’s assessments of maximum employment and inflation has risen to 2% and are on track to exceed it.
CAD Bank of Canada March 10th 2021
- Interest rates remain unchanged
- QE will continue at a pace of $4billion per week.
- Stronger demand is pushing up prices for most commodities, including oil. (Bullish(strength) for the currency)
- A broad-based decline in the US exchange rate combined with stronger commodity prices have led to a further appreciation of the Canadian dollar.
- Bank is watching CPI numbers to stay between the 1-3%
CHF Swiss National Bank: September 2020
- GDP expects to stay below pre covid crisis level, shrink 5% since the start of the crisis.
- Inflation: Inflation rate is (-0.6%) expected to edge back to positive. They are paying attention to inflation rate
- IR: Keeping interest rate at -.075%
- Willing to intervene more strongly in the foreign exchange market.
GBP Bank of England March 18th 2021
- Inflation target at 2%
- Will maintain bank rate at 0.10%
- Will continue their version of QE
- Maintaining a target for government bond purchases at £875 Billion
JPY Bank of Japan Jan 21st, 2020
- Decided to follow yield curve control
- Interest rates will remain at -0.10%
- Will purchase a necessary amount of Japanese government bonds (JGBs) without setting an upper limit so that 10-year JGB yields will remain at around 0%.
- WIll continue their version of QE (buying Japanese government bonds) for another 6 months until September 2021.
- The Bank will be monitoring if the CPI exceeds 2% and stays above the target in a stable manner.
EUR ECB March 11th 2021
- PEPP will continue until the end of March 2022
- Or until the Covid Crisis is over.
- Asset purchase programme will end shortly before ECB starts raising interest rates.
- Will maintain Interest rates at 0.00%
- Will remain at this level until the Governing council sees inflation outlook get close to but below 2% within their projections.
NZD: RBNZ February 2021
- Will continue their QE program until confident that consumer price inflation will be sustained at the 2% per annum target.
- Inflation and employment expected to stay below targets over the medium term in the absence of prolonged monetary stimulus.
- Leave interest rates at current level .25%
AUD: RB Of Australia 2nd March 2021
- Will maintain interest rates at .10%.
- Will not increase the cash rate until actual inflation is sustainably within the 2% to 3% target range.
- Key factor being employment.
- Will not increase the cash rate until actual inflation is sustainably within the 2% to 3% target range.
- Will continue their QE
- Decided to purchase an additional $100 Billion of bonds issued by the Government at $5 Billion per week.
- Inflation remains low and below central bank targets.
- CPI inflation is expected to rise temporarily because of the reversal of some COVID-19-related price reductions.
- The outlook for the global economy has improved over recent months due to the ongoing rollout of vaccines.