Single Currency Softened

Forex News

The single currency has slightly pulled back. Euro/Dollar pair dropped 0.10% to trade at 1.2330. German Gfk Consumer Climate reduced to 10.8. Jobless claims declined 22K. Eurozone Consumer Price Index Flash Estimate rose 1.2% and Core Consumer Price Index Flash Estimate increased 1.0%. This positive data added to speculations about potential ECB rate hike.

As expected, the new Fed Chair Jerome Powell didn’t declare any policy changes but was optimistic about the future of the US economy and inflation. Fed fund futures are now pricing in 33.7% odds for 4 rate hikes in 2018. Dollar index hit the maximum of 90.49 and now the greenback is trading as the firmest.

In Germany, delegates of the Christian Democratic Union voted in favor of Grand coalition with Social-Democratic Party. Now, SPD members will take seats of financial and foreign ministers. The delegates of SPD are yet to vote on March 4.

Today we’ll get US Gross Domestic Product and Pending Home Sales. Tomorrow, Germany and the eurozone will feature their manufacturing PMI indices and the US will release jobless claims, personal spending and manufacturing PMI. We’ll also witness Jerome Powell testifying before the Senate Banking Committee.