Economic projections to give insight on Fed’s next steps
The USD is higher across the board awaiting the release of the Federal Open Market Committee (FOMC) rate statement on Wednesday, March 15, at 2:00 pm EDT (6pm GMT). Fed speakers went out of their way in making sure they telegraphed the central banks’ decision as the market expected a more patient Fed given the Trump administration has not launched its tax stimulus and infrastructure spending policies.
The CME FedWatch tool based on Fed fund rate futures shows the market has listened to Fed member comments and the probability of a rate hike in March is 93 percent. The Fed will also update its economic projections with investors eager to see what path of tighter monetary policy the Fed is anticipating. Chair Yellen’s press conference before the financial press will be closely followed given the willingness to offer more transparent communication from the central bank. Yellen’s press conference is scheduled to start at 2:20 pm EDT (6:30 pm GMT).
OPPORTUNITY KNOCKS: How will Gold be affected if the FED raises the interest rates >> Read This Report <<
The Fed is expected to raise the benchmark interest rate in March, making it the third time since the economic crisis. The American central bank would be proactive in 2017 after exercising a patient stance in the past two years which brought about one rate hike a year. The Fed appears optimistic about the growth of the U.S. economy and Yellen will be asked to address Trump pro-growth policies still to be enacted.
The EUR got a boost from the comments from European Central Bank (ECB) President Mario Draghi that saw the worst outcome for the currency was still highly unlikely. As voters prepare to cast their ballot in the Dutch elections investor anxiety is on the rise. A win by the PVV Party could trigger the Netherland leaving the Union. Lack of cooperation from other parties make the PVV win less probable, but given the loss of confidence in pollsters after the Brexit and Trump wins the market won’t get ahead of the result.
RELATED: Gold is soon going to go on a multi-year run. Check out this untapped gem of a company >> FREE Report here <<
French elections in April and May could prove to be end of the EUR if Marine LePen wins in the second round. The Far-right candidate has campaigned under a flag of nationalism with calls of reintroducing the franc. A Frexit would not be up to LePen alone unless in the improbable scenario where she wins a majority in the house.
READ: 212 Research’s new Gold report is out and available for FREE for 14 days only, CLICK HERE
Scotland added to the political uncertainty in the U.K. after its First Minister Nicola Sturgeon said the is seeking a second Scottish Independence referendum within the next two years. The FX market so far has been the best gauge of investors losing confidence in Theresa May reaching an acceptable agreement despite the limited effect Brexit proceedings have had on the economy. The true impact of leaving the E.U. has not been felt as article 50 has not triggered Brexit.
The eyes of the market will be focused on the words out of Washington as the Fed finished its two day meeting with the publication of the U.S. benchmark interest rate, economic projections and press conference by Fed Chair Janet Yellen.
Market events to watch this week:
Wednesday, March 15
8:30am USD CPI m/m
8:30am USD Core CPI m/m
8:30am USD Core Retail Sales m/m
8:30am USD Retail Sales m/m
10:30am USD Crude Oil Inventories
2:00pm USD FOMC Economic Projections
2:00pm USD FOMC Statement
2:00pm USD Federal Funds Rate
2:30pm USD FOMC Press Conference
5:45pm NZD GDP q/q
8:30pm AUD Employment Change
8:30pm AUD Unemployment Rate
Tentative JPY BOJ Policy Rate
Tentative JPY Monetary Policy Statement
Thursday, March 16
2:30am JPY BOJ Press Conference
4:30am CHF Libor Rate
4:30am CHF SNB Monetary Policy Assessment
8:00am GBP MPC Official Bank Rate Votes
8:00am GBP Monetary Policy Summary
8:00am GBP Official Bank Rate
8:30am USD Building Permits
8:30am USD Philly Fed Manufacturing Index
8:30am USD Unemployment Claims
Friday, March 17
8:30am CAD Manufacturing Sales m/m
10:00am USD Prelim UoM Consumer Sentiment
*All times EST
For a complete list of scheduled events in the forex market visit the MarketPulse Economic Calendar
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of Westbrookradio.com or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.