Recent trade has seen the USD reclaim some of its dignity after markets have begun purchasing the green back on a hawkish FOMC meeting last week. Today sees FOMC members Fischer and Kaplan take to the podium and with the USD`s recent rise from the ashes, the continued strength of the USD will be impacted by these speeches. Should they continue with the hawkish rhetoric, we will see the USD strengthen further while US equities and gold weaken. However, should they strike a more dovish tone, which leads markets to believe that there is discord between what the FED Chairman, Yellen, said and what other members are thinking, we will see the USD weaken while US equities and gold climb.
Out of the UK, we have the head of the BOE, Gov Carney, due to speak. Given that the BOE controls short term interest rates, markets will watch his speech closely to try and ascertain the current and future economic outlook of the BOE regarding the UK economy and price in any potential actions which he may allude to. If he strikes an optimistic tone, we will see the GBP strengthen while if he strikes a pessimistic tone the GBP will likely weaken.
The Swiss National Banks Chairman, Jordan, will be closely watched by markets as the CHF continues to be pressured higher by safe haven buying which has led to the Bank adopting a negative rate policy while warning of a possible fx intervention if the strength gets out of hand. If the speech reiterates the Banks concerns about an over inflated CHF, we will see the currency sold off as traders prepare for a potential intervention in the markets or a further decrease in the interest rates. On the other hand, should the speech be more accommodative of the current conditions, the CHF might strengthen further as the language of intervention is taken off the table.