Private DCN Private DCN - US Dollar

USD: Dollar spikes as expectations of March rate hike increase

By Ricky Bean March 2nd, 2017

The dollar (USD) hit a seven-week high on Wednesday after comments from two US Federal Reserve officials increased expectation of an interest rate hike in March which is now being priced in with a 80% likelihood by the markets.

Both Federal Reserve officials said that the case for tightening monetary policy “has become a lot more compelling”. While John Williams, President of the San Francisco Fed, went on to say that a rate increase was very much up for serious consideration in March, following strong employment data and accelerating inflation.

Today is very light in terms of US data, as we begin to look forward to Fridays manufacturing and services readings and more Federal Reserve officials taking the stand.