Earlier in the month, Denmark, India, Canada and Switzerland all shift their monetary policies, following the ECB’s aggressive trillion-euro bond-purchasing plan.
“The trend of central bank surprises continues, adding volatility to markets and highlighting a more uncertain global policy stance but one that is partially centered on (foreign exchange) ahead,” Camilla Sutton, chief FX strategist at Scotiabank, said in a note. “An environment of increased volatility and uncertainty is typically U.S. dollar positive.”
Looking ahead, Australia’s central bank could lower rates during its policy meeting Tuesday in response to other central bank cuts and the lower inflation outlook, along with Poland at next Wednesday’s rate decision. South Africa and Mexico will also release policy decisions Thursday. Additionally, the Bank of Korea will meet on Feb. 17 and is expected to also follow the global trend of looser monetary policies, according to Brown Brothers Harriman currency strategists.
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Max Chen contributed to this article.