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.

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.

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

  • Bentley Bentayga Mulliner takes the luxury SUV experience to next level

    Bentley Bentayga Mulliner takes the luxury SUV experience to next level

    Bespoke features include a new Mulliner Bottle Cooler in the rear of the cabin, Cumbria Crystal flutes and rear centre console. The bigger differences are found in the cabin, where Mulliner has combined modern and traditional coachbuilding design.
    Nintendo Switch Will Still Require Friend Codes to Add Some Players

    Nintendo Switch Will Still Require Friend Codes to Add Some Players

    According to Express.Co.Uk, Amazone is now sold out, although third-party sellers are bound to start listing consoles tomorrow. Launching much earlier in the year than its predecessors, the Switch will likely appeal at first to Nintendo's loyal fan base.

    David Haye warns Tony Bellew: 'Enjoy your last days'

    I guess the British boxing public would still purchase the fight, but I don't think it would be a good fight at all. The 36-year-old former WBA heavyweight champion of the world also gave a disturbing insight into his frame of mind.
  • 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.
    Federal officials to announce indictments against seven Baltimore police officers

    Federal officials to announce indictments against seven Baltimore police officers

    Then they went to the man's home and stole $200,000 and a $4,000 wristwatch from a safe deposit box. All were arrested, suspended without pay and jailed overnight pending detention hearings Thursday.

    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.
  • 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.
    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 .

    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.
  • 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.

    New Spotify HiFi In The Works, Will Cost Up To $10 More

    In an effort to attract audiophiles away from Tidal, Spotify is reportedly gearing up to launch a new lossless audio tier. The company is paying dearly for its music licenses as well as customer acquisition, and has yet to turn a profit.
    Galaxy S8 fully revealed in new image leak

    Galaxy S8 fully revealed in new image leak

    Apple caused quite a stir when they chose to remove the audio port from its most recent flagships, the iPhone 7 and iPhone 7 Plus. The phone pictured here is the smaller version of Samsung's upcoming Galaxy S8 flagship smartphone duo.