USD/CHF and EUR/CHF rose to tactical highs. What's next?
Greenback is intact with Fed gathering in focus
On Tuesday, the evergreen buck didn’t change versus a basket of main rivals. It’s because market participants waited for the result of the Fed’s gathering on Wednesday, where the major US financial institution was anticipated to uncover the first rate lift of this year.
Estimating the US currency’s value versus a pack of six main currencies, the US dollar index stood still at 89.47.
With a rate lift nearly fully priced in traders will pay attention to indications from the Federal Reserve as for whether market conditions can underpin four rate lifts in 2018, rather than the three it anticipated in December.
A positive evaluation of the American economy by newly-appointed Fed Chair Jerome Powell the previous month powered hopes that a fourth rate lift could be in store.
The major American currency turned to be a bit lower versus the common currency. The currency pair EUR/USD tacking on 0.11% being worth 1.2349.
The common currency was underpinned by renewed hopes that the European Central Bank is relishing a thought of winding down its stimulus measure later in 2018. What’s more, it’s expected to lift interest rates around the middle of 2019.
On Monday, the common currency was spurred right after Reuters informed that ECB representatives are shifting the very focus of their debates from bond buying to future interest rates.
In addition to this, the British pound managed to gain. The currency pair GBP/USD tacked on 0.24% demonstrating a result of 1.4056, which is not far from Monday’s one-month maximum of 1.4087.
On Monday, the UK currency surged after the European Union and the United Kingdom came to a long-awaited agreement on a 21-month post-Brexit transition pact.
The evergreen buck surged versus the Japanese yen. As a result, the pair USD/JPY inched up 0.34% hitting 106.45.
Eurozone, France, and Germany will publish the flash services and manufacturing PMIs on February 19, from 10:15 to 11:00 MT time
Australia will publish the employment change and unemployment rate on February 18, at 02:30 MT time.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.