Federal Reserve splits over Interest Rates

USD
On Wednesday, Federal Reserve officials said the shedding of the $4.5 trillion in bonds the central bank is holding on its balance sheet are expected to  begin this year, according to the summary text.  However, some Federal members urged the Fed to wait until the U.S. economy touches the particular target.

In addition, the Fed did not conceal its worries over the political and economic uncertainty of the new US administration and its effects on the U.S. economy.

• The U.S. dollar index (DXY), which measures the greenback against a basket of currencies, declined slightly yesterday and settled at 100.35 pips.

JPY
The Greenback failed to maintain its gains vs. Japans Yen as appetite for riskier assets increased ahead of Trump-Xi summit. USD declined to the key psychological of ¥110.

Gold
Gold prices boosted yesterday as the U.S. ISM Manufacturing fell to 55.2, the lowest level since October. The precious metal is trading at $1,255 in anticipation of the meeting between leaders of the United States and China.

Oil
Oil prices declined yesterday after the U.S. government reported a weekly increase in the U.S. crude oil inventories of 1.6 million barrels. 

The most important economic events:

• USD Continuing Claims (MAR 25): Medium – Forecast (2040k) – Previous (2052k).

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.