| Time | Country | Event | Period | Previous value | Forecast | Actual |
|---|
| 06:00 | Germany | Industrial Production s.a. (MoM) | March | 1.7% | -0.6% | -0.4% |
The US dollar strengthened slightly against major currencies in the European session on Wednesday, while there is a shortage of new catalysts that can cause significant movements.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.14% to 105.56. Investors considered comments from Fed officials as they weighed when and how often interest rates may be cut this year. Yesterday, Minneapolis Fed President Kashkari suggested the Fed may need to forgo interest rate cuts this year due to stubbornness. More comments from Fed officials are expected throughout the week, which investors will be scanning for hints about the monetary policy outlook.
The yen fell by 0.50% against the US dollar, to 155.36 (the lowest value since May 2). Since the beginning of the week, the yen has fallen by 1.55% after rising by 3.37% last week amid the alleged intervention of the Japanese government. Bank of Japan Governor Ueda said today that the Central Bank may take monetary policy action if yen declines affect prices significantly, while the country's Finance Minister Suzuki repeated a warning that authorities were ready to respond to excessively volatile moves in the currency market.
The pound fell 0.2% against the US dollar, while market participants are cautious ahead of tomorrow's meeting of the Bank of England. Although interest rates are expected to remain unchanged, investors hope to receive new clues about the timing of monetary policy easing. The futures market shows traders believe the Bank of England is likely to start lowering rates by August and could deliver two 0.25% cuts by the end of this year.