The pound sterling put up a sterling performance yesterday. It initially started the day with a strong plunge, only to reverse and close the day much higher following reports of Theresa May’s China trade deal. This and more on the daily Forex news and trade opportunities.
February 8, AtoZForex – The crude oil inventories report and the New Zealand cash rate decision are the key data to be watched on today’s daily Forex news and trade opportunities.
#1 Fed Harker sees possibility of 2017 March Fed rate hike
The President of Philadelphia Federal Reserve Bank (Fed) Patrick Harker has stated that he would be open to hiking the rates once again at the central bank’s March meeting. In December 2016, the Federal Reserve decided to raise the borrowing costs across the US by 0.25 percent from 0.50 to 0.75 percent. Philadelphia Fed President, Patrick Harker, has signaled he is ready for the March rate hike. Mr. Harker has stated: “I still am supportive of three rate hikes this year, of course with a major caveat, depending on how the economy evolves and policy, fiscal policy, evolves. I think March should be considered as a potential for another 25-basis point increase.”
#2 Mario Draghi concerned about Trump US deregulation initiative
The head of the European Central Bank (ECB) has expressed his worries about the new US administration’s moves in regards to the regulatory frameworks across the US. Just recently, Donald Trump has decided to revise the Dodd-Frank Act. This act is the financial regulatory mandate, which was the initiative of the former US President, Barack Obama.
#3 Oil Prices dips After API Reports
Oil prices fell aggressively, following the latest API reports, which showed the 2nd biggest crude build in U.S. history. U.S. crude oil inventories increased by a whopping 14.227 million barrels, according to this week’s American Petroleum Institute (API) inventory report published on Tuesday afternoon, pressing down further on already falling prices. The build is the second largest build in U.S. history, according to Zerohedge. The report from the Energy Information Administration due today will, however, be another key driver for the commodity.
Opportunity: Sell oil on high stockpiles report from EAI
#4 Bank of England policymaker hints higher interest rates may be needed
According to a report in The Telegraph, interest rates may need to rise “soon” to keep a lid on inflation if the UK economy continues its “remarkably solid and stable” performance, according to a top Bank of England policymaker. Kristin Forbes will use a speech in Leeds on Wednesday to say signs of an imminent slowdown in the economy are “as yet few and far between” as she describes the UK as a “star performer” relative to other major advanced economies.
#5 RBNZ Official Cash Rate
The country is due to release its latest cash rate decision. It is largely expected that the Reserve Bank of New Zealand will leave interest rates at 1.75%, after cutting in November. The Kiwi has been rallying in recent days and may be up for further rallies.
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