No Changes In Euro's Dynamic
The Euro/Dollar reduced 0.05% to trade at 1.2188. German Manufacturing PMI fell to 60.6. Eurozone Manufacturing PMI declined to 58.6. The US is about to present personal income and spending, unemployment claims, construction spending and ISM manufacturing. Additionally, today is the second round of Jerome Powell’s testimony. But, the reaction is expected to be muted. Tomorrow, we’ll get German Retail Sales and US UoM Consumer Sentiment.
Eurozone inflation pulled back from 1.3% in January to 1.2% in February. Economic growth, on the other hand, keeps demonstrating signs of improvement. The majority speculates about a rate hike from the European Central Bank. The President Mario Draghi will address the situation next week but the Bank is much likely to stand pat.
Stocks reacted on Jerome Powell’s speech before the congressional committee with declines due to investors’ concerns about potential 4 rate hikes in 2018. That is, fed fund futures are now pricing in 33.7% odds. 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.