All Eyes Turn To FOMC Minutes

USD
The U.S. dollar settled yesterday vs. a basket of major currencies as markets are awaiting the FOMC minutes and the ADP employment change.

Traders expect that the FOMC minutes for the meeting, to be held on 14-15 March; will clear up the picture, as they need to know more about the timing of the adjustment of interest rates and how many rate hikes will take place in 2017. Investors are eager to know if Federal Reserve policy makers believe that the U.S. economy is ready for two more rate increases. Technically, the Greenback could trade under pressure ahead of FOMC minutes.

• The U.S. dollar index settled at 100.40 pips.

Euro
Euro settled at $1.0680 vs. USD traded in a limited range as markets anticipate the upcoming nonfarm payroll. The common currency could trade under pressure as French election back in the spotlight. Markets are awaiting the ADP private payrolls data, which is expected to add 184k jobs being added for the month of March.

GBP
The Sterling pound declined further yesterday and settled below $1.2450, negatively affected by Brexit negotiations, which began at the end of last month.

Gold
Gold jumped to $1,260 yesterday amid concerns over the EU’s outlook. In addition, the focus turns to whether Trump will be able to pass his fabled tax plans or not. The precious metal is awaiting the first meeting between President Donald Trump and his Chinese counterpart, Xi Jinping.

Oil
Oil prices back to gains as the U.S. inventories unexpectedly declined by 1.8 million barrels last week. WTI hit $51 in anticipation of FOMC minutes.

The most important economic events:

• USD FOMC Meeting Minutes (MAR 15): (GMT 18:00) – Important

Disclaimer
The prices and news mentioned in this outlook are absolutely no guarantee of future market performance and do not represent the view of ICM Capital Limited. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades.