Is the pound at the center of the market today too!? ~ Highlights and schedule for February 27 ~

Yesterday, from Tokyo and as far as the European market, rumors of an extension to the deadline for Brexit circulated, and pound buying advanced. Subsequently, when Prime Minister May gave a speech mentioning the extension of the deadline, pound buying continued, but it seems to have taken profits as well, so pound buying did not progress as much as expected.

However, pound buying surged ahead toward the London FIX later.

◎ Today’s Points of Attention

1）Powell, Chair of the Federal Reserve, Congressional Testimony

As with yesterday, testimony before Congress is scheduled for today as well. From yesterday’s remarks, it seems likely they will be in line with expectations. However, since the market is paying attention, it is unlikely to see extreme moves until the testimony is over. While unlikely, I want to watch for any forward-looking comments on rate hikes or balance sheet reduction.

2）Canada CPI (Consumer Price Index)

With the Fed halting rate hikes and adopting a wait-and-see stance, I think the next area where rate hike expectations will gather is Canada. Even if crude oil prices fall due to President Trump’s comments yesterday, the downside remains firm. A stable crude price is positive for Canada. The Bank of Canada says rate hikes depend on data, so if the data is good, the rate hike expectations will rise. The CPI, used to decide on rate hikes, is worth watching.

3）UK Brexit Plan

Yesterday, the news about delaying the Brexit deadline caused the pound to surge. Today, if following the previous plan, it would have been a voting day, but Prime Minister May announced content similar to that yesterday. Today, attention is on whether the vote will be on the same content or on a different content. Either way, today’s vote would be on the amendment. I think the main vote will be on March 12. Prime Minister May stated that it would be implemented by March 13, so headlines are likely to appear until then, so be careful.

◎ Today’s Event Schedule

Wednesday, February 27

UK Parliament – Brexit Plan Vote

US-North Korea Summit

09:30　AUD　Building Completions

10:30　JPY　Katayama Committee member (BoJ Board) speaks

16:00　NOK　Norway Unemployment Rate

19:00　EUR　Euro Area Consumer Confidence Index

22:30　CAD　CPI (Consumer Price Index)

Thursday, February 28

US-North Korea Summit

00:00　USDPowell, Chair of the Federal Reserve, Congressional Testimony

00:30　USD　Crude Oil Inventories

09:01　GBP　UK GfK Consumer Confidence

10:00　CNY　China Manufacturing PMI

10:30　JPY　Sugiyama Committee member (BoJ Board) speaks