U.S. dollar jumps on Fed jolt as Trump speech looms

Several of Yellen's US central bank colleagues in recent days had also put a rise at the next rate-setting meeting on March 14-15 of the committee firmly in view.

The Fed raised interest rates for only the second time in adecade at its policy meeting last December, but has forecastthree rate increases this year on the back of the lowunemployment rate - now 4.8 percent - and risinginflation.

The probability attached to a March rate hike rose to 52 per cent on Wednesday, up from 34 per cent a week earlier.

Fed Chair Janet Yellen and Vice Chairman Stanley Fischer will speak on Friday, likely providing further signals on the US central bank's policy path.

The Euro to US Dollar exchange rate is more likely to be influenced by the strength of the Euro on Thursday as leftover sentiment from Tuesday night's Fed and Trump news will have cooled.

"The main theme doing the rounds this week was the increasing hawkishness of Fed members, which clearly pointed to a rate hike in March", said TreasuryOne currency dealer Andre Botha.

"The previous two occasions ahead of a Fed hike, we've seen gold weaken only to rally in the aftermath and that could potentially be seen once again", said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.

When the Fed published its economic forecasts for the next three years in December it suggested that the Federal Funds rate may rise to 1.4% in 2017, 2.1% in 2018, and 2.9% in 2019.

LG Working On A SteamVR-Powered VR Headset In Collaboration With Valve
With this new VR headset, it appears as though that LG is planning to take a different approach when it comes to virtual reality. We do not have any relationship with manufacturers, and all product choices are made by our editors, themselves.

On Thursday, Powell was asked whether the Fed might be inclined to accelerate the pace of increases to perhaps four this year.

As she did in January, Yellen insisted that the Fed was not behind the curve in raising rates, despite having increased them only twice since the Great Recession ended nearly eight years ago.

On Friday, Fed Chair Janet Yellen flung the door wide open to a March rate increase after acknowledging that the economy was progressing toward the central bank's dual mandate of economic growth and price stability.

And indeed the view among Fed policymakers appears to be that further policy tightening is appropriate regardless of any potential fiscal boost, as inflation edges higher and the economy nears the Fed's goal of full employment. Brent crude, the Global benchmark, was up one-quarter of 1 per cent at $55.22 a barrel, while West Texas Intermediate gained 0.3 per cent to $52.75.

The S&P 500 index showed two new 52-week highs and no new lows, while the Nasdaq recorded 24 new highs and 12 new lows.

And New York Fed Chief William Dudley said the case for a rate increase has become "a lot more compelling".

Hyman also said that Friday next week's employment report, five days before the Fed announcement, would be important, adding that he expects average hourly earnings to climb 0.4 percent in last month's report, up from 0.1 percent in January, adding to the case for a rate hike. That's just below the Fed's official target of 2%.

Related Articles

  • No USB-C Connector on iPhone 8

    No USB-C Connector on iPhone 8

    However, an analyst is refuting those claims stating that all three new iPhones this year will continue using the Lightning port. Kuo also suggested that the larger OLED version of the next iPhone may have a faster charging speed than its smaller siblings.
    Snap Prices Shares at $17 for Thursday's IPO

    Snap Prices Shares at $17 for Thursday's IPO

    For now, Snap is expected to set a $14 to $16 price per share, which would translate to a massive $22.2 billion valuation. Moreover, 26-year-old Spiegel will continue to hold a stake of about 17 percent in the company, valued at $4.05 billion.

    World Health Organization lists deadly bacteria in bid to push antibiotics R&D

    It's getting harder to treat people for drug-resistant infections in the resource-limited settings in which we work. The WHO also point out that new drugs on their own will not solve the problem of antimicrobial resistance.
  • #WheresTheBill: Congress on goose chase to find secret GOP health bill

    The House Energy and Commerce Committee is planning a markup on the draft legislation next week, possibly on March 8. House Ways and Means Committee Chairman Kevin Brady , of Texas, told reporters that there in fact was no final bill.
    Microsoft to Start Shipping Windows Mixed Reality Development Kits in March

    Microsoft to Start Shipping Windows Mixed Reality Development Kits in March

    It features not one but two high-res displays at 1440×1440, refresh rate of 90Hz, a 3.5mm jack along with HDMI 2.0 and USB 3.0. Gesture tracking, another key pillar of the HoloLens experience, is also missing from the Acer HMD.
    Iranian oil output to exceed 3.9m bpd in Feb.: Zanganeh

    Iranian oil output to exceed 3.9m bpd in Feb.: Zanganeh

    US crude prices have roughly doubled over the previous year which has supported a sharp expansion in domestic drilling activity. However, some data other than the production numbers suggest that the Kingdom might be bypassing the OPEC deal by other means .
  • Senate confirms Ben Carson as HUD secretary

    Senate confirms Ben Carson as HUD secretary

    Several congress members have vocally opposed Carson's nomination process including former vice presidential candidate, Sen. It was confirmed that Ben Carson will join Trump's Cabinet to lead the Department of Housing and Urban Development .

    The FCC Just Blocked Privacy Protections For Comcast And Verizon Customers

    The regulations were approved by former FCC Chairman Tom Wheeler in October, along with several other consumer protections targeted at preserving privacy.

    11 new flu deaths reported, dozens hospitalized

    The county says while children under six months old can not get a flu shot, there are other ways to protect them. Flu-like symptoms include fever, cough, sore throat, runny nose, body aches, headache, chills and fatigue.
  • Obama aides left a trail of intelligence about possible Russian election hack

    Obama aides left a trail of intelligence about possible Russian election hack

    Trump's incoming team and Moscow was evolving to include some of the president-elect's most trusted advisers. According to several anonymous U.S. sources, Sessions met with Russian ambassador Sergey I.

    Cuomo And Schumer Denounce Acts Of Anti-Semitism Against JCCs

    The state is also offering a $5,000 reward for information leading to the prosecution of those responsible for bomb threats. Outdoor enthusiasts and activists from across NY have gathered in Albany to urge state lawmakers to back Gov.
    Yenna Sir! Ban Coke, Pepsi? And Drink What? Torino And Bovonto!

    Yenna Sir! Ban Coke, Pepsi? And Drink What? Torino And Bovonto!

    However, it is unclear how numerous state's 20 lakh (2 million) retailers will join the call. A majority of the colleges in Coimbatore have stopped sales of the drinks in their canteens.