Good day forex traders.
We continue to observe sentiments shifting towards the US dollar. US Federal Reserve officials have been reported saying that a rate hike may happen as early as April if economic growth remains. These comments probably reversed the dovish tone set during the previous US FOMC event.
As the US dollar gains, currency pairs such as the EUR/USD are likely to drop. Find below a Bloomberg update on the markets.
The Bloomberg Dollar Spot Index was headed for its biggest weekly gain since November after Fed Bank of St. Louis President James Bullard said Thursday that officials may be getting close to lifting rates again, provided growth continues as forecast. South Korea’s won and the British pound led declines among major currencies on Friday as the yen hit a one-week low. Commodities were set for their first weekly loss in more than a month with crude oil having settled below $40 a barrel in New York. Financial markets are shut Friday for holidays from Asia to Europe and the Americas. Bullard is one of at least four regional Fed presidents to have talked up the possibility of a rate hike this week, comments that helped revive demand for the greenback after a dovish outcome to the central bank’s March 15-16 meeting sent the dollar tumbling. The rebound in the U.S. currency spurred declines in raw-materials prices this week, helping derail a five-week rally in global stocks.
Concern about a U.S. interest-rate hike has re-emerged after most data in the U.S. show strong economic growth,” said Win Udomrachtavanich, chief executive officer of One Asset Management Ltd. in Bangkok, which oversees some $2.8 billion. "The possibility of a rate hike will definitely reignite the outflows of funds back to the U.S., especially from emerging markets.”
Revised gross domestic product data released Friday confirmed that South Korea’s growth rate slipped from a five-year high in the fourth quarter as a surge in property transactions faded in the final three months of 2015. The U.S. will also update its GDP estimate, while inflation data in Japan showed consumer prices […]