Focus on Central Bank Speakers Today
22 March 2022
Sentiment turned positive on Tuesday, pushing stocks higher while commodities ticked lower.
Market participants will keep a close eye on central bank speakers today, including ECB President Christine Lagarde, who is due to speak about the future of money in the Eurosystem and the potential role for a digital Euro at an online summit hosted by the Bank for International Settlements Innovation.
Moreover, the ECB's Panetta, Lane; the Fed's Williams, Mester; and the BoE's Cunliffe will speak today.
Additionally, the Canadian annual budget will be released today. This document outlines the Federal government's budget for the year, including expected spending and income levels, borrowing levels, financial objectives, and planned investments;
Regarding the Russia-Ukraine conflict, Turkey's foreign minister said Russia and Ukraine were nearing agreement on "critical" matters - with a ceasefire "possible" if neither side backtracked.
In the markets, the USD was mixed - slightly higher against the EUR (with the EURUSD down to 1.10), lower against commodity currencies and the Pound, but 1% stronger against the JPY, pushing the USDJPY pair above 120 for the first time since January 2016.
Traders are pricing in more hawkish Fed than the central bank would like - US yields surged today again, with the 10-year trading at 2.35% and the 2-year yield at 2.2%.