Will the dollar-buying continue? Focus on Fed Chair Powell! ~ Highlights and schedule for November 28 ~
◎ Today's Highlights
1) Powell, Chairman of the Federal Reserve, remarks
Yesterday, remarks by Federal Reserve Vice Chair Clarida were more hawkish than expected (not as dovish as anticipated), pushing the dollar higher. With stock prices and oil prices retreating, the yen weakened. Today, remarks by Fed Chair Powell are scheduled. Among this week’s key voices, this is the statement the market is paying the most attention to. Will the trend from yesterday continue, or will his remarks be dovish and cause the dollar to retreat?
While writing this article, President Trump said, “I am unhappy with Powell, and Fed policy is hurting the economy.” Could this be a warning against Powell’s remarks today?
2)BoE Financial Stability Report
In the UK, Prime Minister May is touring the country to secure approval for the Brexit negotiation agreement. In the meantime, the Bank of England (BoE) will release its Financial Stability Report. This time, in addition to the usual report, the BoE is expected to provide views on the economy and finance if the UK leaves the EU. After that, a press conference by BoE Governor Carney is scheduled. The timing overlaps with Powell’s remarks, so pound and dollar could exhibit volatile moves, potentially affecting other currencies. Caution is advised. This is considered today’s main trading window.
3)Key Speeches
As above, remarks by Powell and BoE Governor Carney are among many scheduled key speeches. Regarding Italy’s budget, this week is expected to initiate corrective procedures for excessive deficit (EDP). Brexit negotiations are also nearing a climax. Speeches by European leaders could move the euro and pound. Exercise caution with any important speeches.
4)US GDP Outlook/Release
Although there are many speeches, GDP and 7-year note data are also due. Recently, indicators have moved less on releases, but that does not mean data is ignored; numbers should be closely watched.
◎ Today's Economic Calendar
Wed, 11/28
07:00 NZDOar RBNZ Governor Speech
15:30 EURLane—President of the Central Bank of Ireland Speech
21:05 EURKule ECB Governing Council Member Speech
22:00 EURDraghi ECB Vice President SpeechGDP (Revision) Release
Thu, 11/29
G20 Finance Ministers' Meeting
00:00 USD Richmond Fed Manufacturing Index
00:20 EURPraet ECB Executive Board Speech
01:30 GBPSemiannual Financial Stability Report & Stress Test
01:45 GBPCarney BoE Governor Press Conference
02:00 USDPowell Fed Chair Remarks
03:00 USD 7-year Treasury Auction
09:00 NZD NBNZ Business Confidence
09:30 AUD Private Sector New Capital Expenditure
