Rates To 1% at the March Meeting
The Greenback was declined yesterday vs. a basket of major currencies after the U.S. Federal Reserve raised its key interest rate from 0.75% to 1%, as universally expected, and signaled that further hikes this year will be gradual. The market currently expects the Fed to hike two more times this year, one in June and another in December.
Gold prices hit new highs and settled at $1,220, in the wake of the Fed's interest rate decision. Technically, the yellow metal could touch new highs during the next period; however, it could be affected by Trump's budget plan.
The Sterling pound was also buoyed and hit $1.23 after the Federal Reserve hiked interest rates in line with expectations. However, Cable came off its highs on soft UK wages data, but it could re-test $1.23 once again.
Oil prices have turned higher, boosted by an expected decline in U.S. crude inventories and data from the International Energy Agency (IEA) suggesting OPEC cut deal could create a crude deficit in the first half the year. U.S. crude settled at $49 and could re-test $50 before the end of the week.
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