Starting today’s report with an important quote “the U.S. central bank would likely move forward with gradual increases in interest rates.” Fed Chair Jerome Powell said yesterday.
The Greenback rose five-week highs vs. a basket of major currencies after Federal Reserve Chairman Jerome Powell said the U.S. economic outlook remains bright, bolstering bets on further Fed rate hikes this year. Additionally, Powell also said that his personal outlook for the economy has strengthened since December. On the release front, traders are awaiting the U.S. Gross Domestic Product Annualized, which is expected to hit 2.5% from 2.6%.
The Single currency fell by 0.25%, to settle at $1.2202, as dollar recovered. Earlier data showed that the German Unemployment Claims Rate s.a. (FEB) settled at 5.4%. On the release front, markets are awaiting EUR Euro-Zone Consumer Price Index Estimate (YoY) (FEB), which is expected to hit 1.2% from 1.3%.
The Sterling pound fell by 0.9%, to settle at $1.3900. No major reports are due from The UK today.
Against the JPY, the USD rose by 0.25%, to settle at ¥107.07 as traders turned to the Greenback.
Earlier today, Gold prices failed to manage its gains negatively affected by a strong USD, amid risk appetite after comments by Federal Reserve Chair Jerome Powell in the previous session.
Gold Futures - Apr 18 (GCJ8), rose by 0.11%, to settle at $1,320.00.
Early on Wednesday, Crude oil prices declined, as news of an increase in U.S. inventories dented optimism surrounding OPEC efforts to support prices and limit output. On the release front, traders are now looking ahead to official data from the U.S. Energy Information Administration, due later today, which is expected to hit 2233k from -1616k. Crude Oil WTI Futures - Mar 18 (CLH8) fell as much as 0.16%, to settle at $62.91, and Brent Oil Futures - Apr 18 (LCOJ8) was down by 0.03% at $66.50.
The most important economic events:
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