US Morning Notes – USD mixed, discount rate hike not a policy change
Here are the latest Financial News:
FX Highlights
- The USD traded at a nine month high supported by the Fed’s surprise decision to hike the discount rate late Thursday afternoon, Fed officials said the rate hike is not an indication of policy direction but a move towards normalization, the rate hike is not signal of a policy change according to Fed Governor Duke, stocks and commodities declined in reaction to the Fed rate hike, the Fed’s Lockhart said that the markets belief in a high probability of a rate hikes this year is overblown, Lockhart’s comments helped to slow the USD rally and the USD pared gains into the U.S. session, EU manufacturing PMI rises and services PMI growth slows, UK retail sales post a sharp decline, AUD traded higher supported by hawkish rhetoric from the RBA
- Focus turns to today’s release of US CPI and Canada’s LEI
- Fed hiked the discount rate 25bps to 0.75%
- Japan’s finance minister says Fed rate hike is not negative for the Japanese economy because the JPY weakened, JPY lower
- RBA Governor Stevens says rates are still 50 to 100bps points below average, AUD higher
- UK Telegraph reports that the UK is vulnerable to a worse deficit crisis than Greece, UK January retail sales declined by 1.8%, BOE’s Barker to step down at the end of her term on May 31st, GBP lower
- EU February flash manufacturing PMI rose to 54.1 from 52.4 and February services PMI drops to 52 from 52.5, EUR lower
- The IMF tells the G-7 to maintain stimulus but prepare exit strategies
- Chinese officials said that President Obama’s meeting with the Dalai Lama hurts ties with China
- US equity markets set to open lower, European equities mixed, Nikkei closed 212 points lower
Upcoming Events
- US - Friday, January CPI will be released expected at 0.3% compared to 0.2% last month
- CAN – Friday, January LEI will be released expected at 1% compared to 1.5% last month
Source: Easy Forex
My recommended Forex Broker is Forex Yard.
Got something to say?
You must be logged in to post a comment.