The head of the Federal Reserve Jerome Powell will testify on the Semiannual Monetary Policy Report on Tuesday and Wednesday
Evergreen buck leaps as traders wait for Fed meeting
On Friday, the greenback rallied because traders shifted their focus to the highly-anticipated Federal Reserve rate lift already next week, notwithstanding uncertainty over next year’s rate lifts kept gains in check.
Tracking the evergreen buck’s purchasing potential against a number of its key peers the USD index managed to add by up to 0.5% ending up with a reading 97.52.
The primary US financial institution is generally expected to meet for two days next week. The major bank is believed to have rates raised at this meeting. As for the likelihood of this move, experts generally give high chances. For example, Investing.com’s Fed Rate Monitor Tool assesses this probability at79.2%.
Market participants are still uncertain of the number of rate lifts next year, after dovish remarks from Fed policymakers who have indicated that interest rates are approaching a neutral range exactly where they don’t stimulate or affect economic surge.
Besides this, there’s much disagreement in the financial markets over the US major bank’s rate lift course next year, with market participants expecting anywhere between one to four rate lifts, as some financial analysts pointed out.
The evergreen buck tumbled versus the safe-heaven Japan’s currency. The currency pair USD/JPY went down by 0.07% ending up with 113.53.
In addition to this, the UK currency inched down because Brexit woes resumed, as it seems unlikely that Britain’s Prime Minister Theresa May’s party will underpin her pact with Brussels on departing from the European bloc in March. The currency pair GBP/USD went down by about 0.3% trading at 1.2605.
The common currency was suppressed by the stronger greenback. The currency pair EUR/USD slumped by 0.6% showing 1.1291.
Additionally, NZD/USD decreased by 0.9% hitting 0.6788. AUD/USD tumbled by 0.8% demonstrating 0.7163. Besides this, Canada’s currency dipped. USD/CAD shot up by nearly 0.3% trading at 1.3389.
The United States will publish the non-farm employment change, also known as non-farm payrolls (NFP) at 15:30 MT time on February 7.
The level of non-manufacturing PMI for the United States by the Institute of Supply Management will be published at 17:00 MT time on February 5.
The Federal Open Market Committee will publish its meeting minutes on February 19, at 21:00 MT time.
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