Article Highlights

  • US markets closed on Presidents Day
  • ECB’s Nowotny on a wait-and-see mode on rates
  • RBA not looking to ease rates anytime soon
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The U.S. markets were out for Presidents Day yesterday so it’s no surprise that major currencies traded on tight ranges. USD/JPY stayed within a 10-pip range just below 102.00, EUR/USD bounced along a 20-pip range, and GBP/USD only fell by 30 pips after a sharp London session selloff. Even the comdolls experienced limited volatility with AUD/USD, USD/CAD, and NZD/USD not moving by more than 10 pips.

Markets mostly shrugged of ECB member Nowotny’s speech yesterday. He hinted that the ECB is willing to hold off from cutting its rates as long as inflation remains below its 2% targets.

Will we see more volatility today? The RBA has already fired the first salvo with its minutes from February 4 meeting. The central bank recognizes that the Aussie is now down 15% from its last 2013 peak and has fallen by an average of 3% against its other counterparts in the last two months.

The members are now on a wait-and-see mode as they assess the impact of their previous stimulus and the Aussie’s weakness.

The BOJ’s monetary policy decision is up next! Market geeks aren’t exactly expecting anything new from the central bank but keep your eyes peeled for any jawboning or surprises!

See also:

London Session Recap

Bonnie and Clyde, peanut butter and jelly, Justin Bieber and his hair. Some things just go well together.

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