New Zealand Exports: $7.65B (December) vs $6.99B

New Zealand Imports rose from previous $7.15B to $7.6B in December

At its January meeting, the Federal Reserve kept the Fed Funds Target Range (FFTR) unchanged at 3.50%–3.75%, a decision that was fully in line with market expectations.

United States Fed Interest Rate Decision meets forecasts (3.75%)

This is a summary of the main highlights following the BoC’s interest rate decision earlier on Wednesday.

US Treasury Secretary Scott Bessent said rate decisions remain firmly in the Fed’s domain and expressed hope that policymakers would keep an open mind.

Canada BoC Interest Rate Decision in line with expectations (2.25%)

The Bank of Canada (BOC) is expected to keep its policy rate unchanged at 2.25% for the second consecutive meeting.

Speculation is intensifying over US President Donald Trump’s nomination of the next Chair of the Federal Reserve (Fed), an announcement that could come as early as today, while the Federal Open Market Committee (FOMC) is also holding its monetary policy meeting.

TD Securities' Global Strategy Team provides insights on the upcoming Bank of Canada Rate Decision scheduled for January. The expectation is for the overnight rate to remain at 2.25%, with a cautious tone in the policy statement.

United States MBA Mortgage Applications dipped from previous 14.1% to -8.5% in January 23

Ireland Retail Sales (MoM) declined to -0.4% in December from previous 0.5%

Ireland Retail Sales (YoY): -0.1% (December) vs previous 2.5%

The United States (US) Federal Reserve (Fed) announces its interest rate decision on Wednesday. Markets widely expect the US central bank to keep the policy rate unchanged in the range of 3.5%-3.75%.

India Cumulative Industrial Output up to 3.9% in December from previous 3.3%

India Manufacturing Output up to 8.1% in December from previous 8%

India Industrial Output above expectations (5.5%) in December: Actual (7.8%)

The Bank of Canada is expected to maintain its overnight target at 2.25%, a decision anticipated by forecasters and OIS markets. Recent economic data has tempered rate cut expectations, leading to a slight easing bias in the near term and a mild hiking bias later in 2026.

Austria UniCredit Bank Manufacturing PMI fell from previous 49.3 to 47.2 in January

Italy Business Confidence above forecasts (89) in January: Actual (89.2)

Italy Consumer Confidence came in at 96.8 below forecasts (97) in January

The National Bank of Hungary maintained its tone during a recent meeting, with no immediate indication of rate cuts. However, the market reaction suggests a green light for potential cuts in February, especially if January inflation data supports this.

The Deutsche Bank report indicates the Euro has strengthened, closing above $1.20 for the first time since June 2021. This appreciation has led to speculation regarding the European Central Bank's potential need to consider interest rate cuts.

The UOB Group report by Quek Ser Leang and Lee Sue Ann highlights that the Australian Dollar is likely to continue its upward trajectory, with potential resistance at 0.7050. The report notes that while further strength is anticipated, overbought conditions may limit the extent of the rally.

Germany GfK Consumer Confidence Survey came in at -24.1, above expectations (-25.8) in February

US stock indices ended mixed on Tuesday as corporate earnings reports varied. The S&P 500 rose by 0.4%, driven by technology stocks, while the Dow Jones Industrial Average fell by 0.8%. The Treasury yield curve steepened as investors reacted to weak consumer confidence readings, HSBC notes.

The UOB Group report by Quek Ser Leang and Lee Sue Ann suggests that the Euro is poised for further gains against the US Dollar, with a potential retest of 1.2080. As long as the Euro holds above 1.1950, the outlook remains positive, although a pullback is expected after reaching higher levels.

European Central Bank (ECB) executive board member Piero Cipollone said early Wednesday, “the European economy has been proven resilient and we expect data that could top our forecasts.”

Australia Quarterly RBA Trimmed Mean CPI (YoY) above forecasts (3.2%) in 4Q: Actual (3.4%)

Australia Quarterly RBA Trimmed Mean CPI (QoQ) registered at 0.9% above expectations (0.8%) in 4Q