Focus on upcoming decisions from Fed, RBA, and RBNZ, with implications for currencies and monetary policy.

From Investing.com: 2025-02-14 07:04:00

After Powell and CPI data, dollar traders turn to Fed minutes. RBA to cut rates by 25bps, focus on forward guidance. RBNZ may opt for a third consecutive 50bps rate cut. UK, Canadian and Japan’s CPI data are also in focus. Will the Minutes Confirm Hawkish Fed Bets?

The US dollar started the week strong after Trump’s tariff announcement, with Fed Chair Powell indicating no rush for further rate cuts. Investors are now pricing in only 30bps worth of cuts this year, more hawkish than the Fed’s own projection. The focus is now on the Fed minutes for clues on future policy direction.

RBA to Begin its Easing Cycle

The RBA is expected to cut rates by 25bps, with concerns about tariffs impacting Australia’s economy. Traders are pricing in nearly three quarter-point cuts this year, with the first one expected at this meeting. Investors will be watching for signals on future easing cycles.

RBNZ: To Cut by 50 or 25bps?

The RBNZ may cut rates by another 50bps or slow the pace to 25bps. Economic data prompted investors to expect 110bps worth of cuts this year. The decision will impact the New Zealand dollar, which may continue to underperform.

UK Data to Shape BoE Policy Expectations

The UK will release employment and CPI data, with investors pricing in around 55bps worth of additional rate cuts this year. The data may influence policy expectations and the performance of the pound.

Eurozone PMIs, Canada and Japan CPI Data

Eurozone PMIs, Canadian CPI data, and Japan’s Nationwide CPI numbers will also be in focus. The data releases could impact the euro, Canadian dollar, and Japanese yen, influencing policy decisions and currency movements.



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