U.S. dollar

Key events:         UK – BoE Gov Bailey Speaks This week will help determine what the Federal Reserve's (Fed) next rate decision will be. The U.S. central bank faces the difficult task of striking a balance between its ongoing fight against inflation and mounting signs of financial instability. So, will the Fed's main inflation indicator continue to decline?

Key events:         Eurozone – CPI (YoY) (Feb) Yesterday's ECB decision was crucial as it gave the first glimpse of what bank stress means for monetary policy. And it meant nothing special – good news for the markets. The ECB decided not to blow up the banking problems and announced a 50bp rate hike during yesterday's decision, pointing to high inflation. The opening sentence of ECB head Christine Lagarde's speech stated that the bank has been forecasting "too high inflation for too long."

Key events:         Austalia – RBA Meeting Minutes      UK – Composite PMI     UK – Manufacturing PMI   UK – Services PMI Canada – Core CPI (MoM) (Jan)   Canada – Core Retail Sales (MoM) (Dec) USA – Ex-sting Home Sales (Jan) The dollar weakened slightly against the euro, the Danish, and the Swedish krona, but added against the other G10 currencies. The yen weakened by 2% to become the weakest currency in the G10 group.

Key events:       Eurozone - ECB President Lagarde Speaks      USA - Core PCE Price Index (MoM) (Dec)   USA - Pending Home Sales (MoM) (Dec)   The dollar gained against all currencies of the Big Ten yesterday amid the published economic data. The strengthening of the dollar coincided with the growth of risk appetite in Europe and the U.S. In this case, the yield on 2-year U.S. Treasury notes interrupted a two-day decline and rose Thursday to 4.18%, and the yield on 10-year bonds rose 5 bps to 3.49%.

Key events:       USA - Christmas Canada - Christmas Switzerland - St. Stephen's Day UK - Boxing Day Australia - Boxing Day New Zealand - Boxing Day  

Key events:       UK – Retail Sales (MoM) (Nov)   UK – Composite PMI    UK – Manufacturing PMI   UK – Services PMI    Eurozone – CPI (YoY) (Nov)   The dollar rallied against all Big Ten currencies on Thursday. This strengthening was very broad-based, with 85 of the 146 currencies tracked by Bloomberg falling against the U.S. competitor. Four major precious metals also lost ground.

Key events:       Switzerland  – Interest Rate Decision (Q4)     Eurozone – EU Leaders Summit      UK – BoE Interest Rate Decision (Dec)     Eurozone – ECB Interest Rate Decision (Dec) USA – Core Retail Sales (MoM) (Nov)   USA – Initial Jobless Claims     Eurozone – ECB President Lagarde Speaks    

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Key events: UK – Construction PMI (Nov) Canada – Ivey PMI (Nov) Australia – RBA Rate Statement      USA – EIA Short-Term Energy Outlook     U.S. stocks fell while bond yields jumped after the release of positive ISM service sector data suggesting that the most important part of the U.S. economy, where sticky inflation lives, is not close to collapse.

Key events: UK – Manufacturing PMI (Nov) USA – Core PCE Price Index (MoM) (Oct) USA – Initial Jobless Claims   USA – ISM Manufacturing PMI (Nov) The U.S. dollar is declining against major currencies in trading Thursday morning after a speech the day before by U.S. Federal Reserve (Fed) Chairman Jerome Powell.