US Dollar Rises Ahead of FOMC Minutes
The US dollar rose against its major trading partners early Wednesday ahead of the release of weekly Redbook same store sales and minutes of the Federal Open Market Committee’s (FOMC) Jan. 30-31 meeting.
Earlier Wednesday, the Mortgage Bankers Association said applications declined sharply in the week ended Feb. 16 when mortgage rates moved back above 7% on concerns that Federal Reserve rate cuts will be delayed by the stronger-than-expected inflation and employment data.
Atlanta Fed President Raphael Bostic is scheduled to speak today, followed by Fed Governor Michelle Bowman – both vote on the FOMC this year. A quick summary of foreign exchange activity heading into Wednesday showed that USDEUR fell to 1.0795 from 1.0808 at the Tuesday US close and 1.0799 at the same time Tuesday morning.
Eurozone consumer confidence for February is scheduled to be released today. The next European Central Bank meeting is set for March 7. GBPUSD fell to 1.2612 from 1.2623 at the Tuesday US close but was above a level of 1.2592 at the same time Tuesday morning.
UK public sector borrowing declined in January while manufacturing orders expectations remained below the breakeven point in February, data released earlier Wednesday showed. Bank of England policy board member Swati Dhingra is scheduled to speak while the next BoE meeting is set for March 21.
USDJPY rose to 150.0518 from 150.0030 at the Tuesday US close but was below a level of 150.2204 at the same time Tuesday morning. The Reuters Tankan index, a measure of Japanese business conditions, fell below the breakeven point in February, while the adjusted Japanese trade balance moved into surplus in January from a deficit in the previous month, data released overnight showed.
Exports rose sharply compared with a year earlier while imports declined. The next Bank of Japan meeting is set for March 18-19. USDCAD rose to 1.3530 from 1.3523 at the Tuesday US close and 1.3474 at the same time Tuesday morning.
Canada’s new home price data is scheduled to be released later today, at the same time as an appearance by Bank of Canada Deputy Governor Toni Gravelle. The next BoC meeting is set for March 6. #US Dollar Rises Ahead of FOMC Minutes Senate to Probe CBN Disbursement to Buhari, Farmers
