It’s been a mixed week so far in the currency markets. Today, however, it promises to be a high-intensity day considering the number of high impact news on the economic calendar. On the daily Forex news and trade opportunities, we look at the coming FOMC rate decision, as well as key US data, amongst others.
March 15, AtoZForex – On the daily Forex news, we also have labour data from the UK. While the New Zealand GDP is also due for release today.
#1 Dollar rallies ahead of Fed meeting
The USD strengthened on Tuesday, driven by wide speculation that the Federal Reserve will hike interest rate today. Also, political risks in Europe as Dutch elections get under way contributed to driving the greenback higher. The futures market is pricing in a 95 percent chance of a U.S. interest rate increase today.
Opportunity: Sell EURUSD on rallies ahead of Fed decision
#2 Crude oil stumbles on Saudi defiance
Crude oil dipped past $48 per barrel following Saudi Arabia’s disclosure of an increase in production. Oil slid over 1.4 percent after OPEC data showed Saudi Arabia reversed one-third of the production cuts.
#3 Could ECB raise interest rates before QE ends?
Policy makers are considering the question of if European Central Bank’s interest rates could rise before quantitative easing (QE) ends. Investors are betting that the ECB will raise interest rates before the end of its QE. They are also betting that the central bank will exit from negative policy rates by January 2020. The ECB may taper its bond purchases further beyond the end of this year. The central bank may do so as it faces increasing limits on its bond-buying program.
#4 UK Parliament approves Brexit bill: When divorce talks will start?
The Prime Minister of the UK, Theresa May is getting ready to invoke the Article 50 during the last week of March following the approval from the parliament to commence the process. The UK Parliament has passed the law, thus permitting the UK government to trigger the Article 50 of the Lisbon Treaty. Hence, PM Theresa May is gearing up to announce the official start of Brexit in the last week of the current month.
#5 Is Fed 2017 March interest rate hike certain?
Market watchers are waiting today to hear the verdict regarding rate hikes from the Federal Reserve It seems as if the waiting period has been over after a long wait. The US central bank may hit the accelerator on rate hikes going with the comments made by the Fed officials at the beginning of this month. In the upcoming FOMC meeting, Fed 2017 March interest rate hike is almost universally expected. With inflation trending up, the policymakers may signal at least three rate rises in 2017 streamlined with their forecast. Hence, all signals point towards rate hikes.
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