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Dollar steadies ahead of heavy day

News Date: 15/3/2017 05:22:01

The dollar almost unchanged in early trades near the two-day high, ahead of a busy day with US economic data, the most important of which will be the Federal Reserve's interest rate decision tonight, although the interest rate hike is almost certain, eyed on the projections of the Fed on monetary policy and economic growth.

We are Looking ahead to the Fed's press conference 30 minutes after the announcement of the rate decision, the bank will release its outlook for growth and inflation over the next two years, with its outlook on interest rates.

These expectations are the only drivers for the markets, and push the dollar higher to reach new tops, it is clear that raising interest rates is not enough to give the Dollar the strength, now it needs more times to raise interest rates on 2017.

At 03:42 GMT, the US Dollar Index was up 0.28% at 101.57.

Prior to the interest rate decision, we are waiting a number of key economic data, headed by the consumer price index (the first measure of inflation), which is expected to fall in February to 0.0% from 0.6% It is estimated to remain close to the previous month's reading at 0.3%.

Inflation has been one of the most important prerequisites for the introduction of tightening monetary policy. The US PPI came yesterday higher than the estimate, adding more signs of improved inflation.

Retail sales in February will also be released, which is expected to show a drop to 0.4% from 0.2%. Despite the slight rise in these numbers, US consumer spending levels are strong, which in turn positive on economic growth.

We expect to see tight trading on the dollar until the release of the economic data and the interest rate decision.

Pound waits employment data

Pound settled on the Asian sessions after it has dropped yesterday, affected by British Prime Minister Teresa May won on Monday parliamentary backing to begin the process of exit from the European Union and with the start of two years of talks that will shape the future of Britain and Europe, Scotland also considered a second referendum for possible independence from the United Kingdom.

The British national Statistics office will announce today employment data in February, which is expected to show a rise in the number of unemployed, adding more negative signs of economic growth in Britain.

The wage rate is expected to fall from 2.6% to 2.4% in the three months ending in February, while the change in claims will rise to 3.2 thousand from the previous month's reading of -42.4 thousand, with unemployment steady at 4.8%.

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