Greenback Boosted By Fed Protocol
The greenback, as well as Treasury yields, rose thanks to Fed January meeting protocol, which indicated that members improved their outlook for growth, labor market and inflation, as expected. The possibility of a March rate hike has been reinforced as well. And now, dollar is trading as the firmest of this week. But, in Asia, the currency is trading lower as it’s bounded under key short term resistance versus the basket of its rivals. 10 year yield hit the 3-year maximum of 2.943. Meanwhile, DOW reduced -0.67% to 2479.78.
Andrew Haldane (BoE Chief Economist) stated that UK wage growth began to edge up. Unfortunately, any hints on further policy accommodation hasn’t been given neither by Haldane, nor by the Governor Carney. Today, European Central Bank will release its meeting minutes, and investors are hoping they will unveil Bank’s plan concerning the asset purchase program.
US non-farm payrolls marked a wage growth of 0.3% mom. Consumer Price Index rose 0.5% mom and core Consumer Price Index increased 0.3% mom. Today, Germany will feature Ifo business climate, Britain will present revision of Q4 Gross Domestic Product, index of services and CBI reported sales, Canada will show retail sales and US will publish unemployment claims and leading index.