U.S. FED likely to hike FED funds rate in March
Source: FxWire Pro - Commentary / 20 Mar 2018 17:38:32 Eastern Standard Time
The Federal Open Market Committee had kept the rates on hold during its January meeting. However, the U.S. Fed is expected to hike the fed funds rate by 25 basis points during its meeting on Wednesday, noted Wells Fargo in a research report. Inflation has gathered momentum in recent months, with core inflation running at a 3.1 percent three-month annualized rate in February.
The average hourly earnings growth also stayed strong in February following a solid 2.8 percent year-on-year in January, and the labor market continues to tighten. Given higher inflation, rising inflation expectations and a strong employment outlook, four rate hikes are expected this year, said Wells Fargo.
At 21:00 GMT the FxWirePro's Hourly Strength Index of US Dollar was slightly bullish at 72.7231. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest© FxWire Pro 2018. All rights reserved. The FxWire Pro content received through this service is the intellectual property of FxWire Pro or its third party suppliers. Republication or redistribution of content provided by FxWire Pro is expressly prohibited without the prior written consent of FxWire Pro, except for personal and non-commercial use. Neither FxWire Pro nor its third party suppliers shall be liable for any errors, omissions or delays in content, or for any actions taken in reliance thereon.