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EUR: pending ECB head's speech

The Eurozone is preparing to release the ZEW business sentiment index and balance of payments data. ECB head Christine Lagarde is scheduled to speak - her neutral assessment of inflation and banking sector situation might support the EUR.

USD: focus on Fed meeting

The key event of the week is the US Federal Reserve meeting. The regulator has a difficult decision to make: leave interest rates unchanged to prevent a banking crisis from escalating or continue to fight inflation effectively. A rate hike could collapse the USD exchange rate against the usual reaction as it would increase pressure on banks.

GBP: large block of price statistics

The UK will publish the main inflation report, core inflation and producer price information. Inflationary pressures in the country may have eased slightly, but everything will depend on the results presented: the GBP exchange rate is ready to go up and strong statistics will support it.

AUD: RBA meeting minutes

Australia will release the minutes of the previous central bank meeting - the document may contain indications on the Reserve Bank of Australia's next steps in changing the interest rate. The main scenario assumes that the RBA will raise the rate at least once more before taking a pause. A short-term recovery of the AUD would also be able to rely on this support.

JPY: under inflationary pressure

The Japanese Yen has temporarily given up on the devaluation scenario against the USD but these are only local fluctuations in response to external events. Upcoming core inflation statistics could put pressure on the JPY.

The post A Week in the Market: the Word is Out to the Fed (20.03-24.03) appeared first at R Blog - RoboForex.

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By: Anna Rostova
Title: A Week in the Market: the Word is Out to the Fed (20.03-24.03)
Sourced From: blog.roboforex.com/blog/2023/03/20/a-week-in-the-market-the-word-is-out-to-the-fed-20-03-24-03/
Published Date: Mon, 20 Mar 2023 13:05:49 +0000

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