US Dollar May Rise as Fed Commentary Boosts Rate Hike Outlook
Date
3/29/2016 7:03:53 AM
(MENAFN- DailyFX) Talking Points:
Quiet European data docket puts the spotlight on Fed commentary US Dollar may rise as Williams Yellen boost rate hike speculation NZ Dollar outperformed in Asia after demand rose at bill auction Comments from Federal Reserve officials are in the spotlight as the spectrum of global financial markets return from Easter holiday closures. Remarks from San Francisco Fed President John Williams are first to cross the wires followed by a much-anticipated speech from Chair Janet Yellen. We’ve argued that Fed policymakers’ tone following the March FOMC meeting has been aimed at realigning official and market-based policy bets to set the stage for a smooth rate hike in June. Rhetoric stressing domestic progress toward the central bank’s unemployment and inflation objectives while blaming external forces for the pause in the normalization cycle would amount to more of the same. This may boost priced-in tightening expectations encouraging the US Dollar higher. The New Zealand Dollar outperformed in otherwise quiet overnight trade. The move higher tracked local bond prices following an auction of 3- 6- and 12-month bills to suggest a pickup in demand for NZD-denominated paper. Indeed bid-to-cover ratios reflected better uptake this time around versus the latest time similar-maturity debt was on offer two weeks ago. Are markets matching DailyFX analysts’ expectations so far in 2016? Find out here! Asia Session GMT CCY EVENT ACT EXP PREV 23:30 JPY Jobless Rate (FEB) 3.3% 3.2% 3.2% 23:30 JPY Job-To-Applicant Ratio (FEB) 1.28 1.29 1.28 23:30 JPY Overall Household Spending (YoY) (FEB) 1.2% -1.9% -3.1% 23:50 JPY Retail Trade (YoY) (FEB) 0.5% 1.6% -0.2% 23:50 JPY Retail Sales (MoM) (FEB) -2.3% -0.9% -0.4% 23:50 JPY Dept. Store Supermarket Sales (FEB) 2.2% 1.6% 0.9% 05:00 JPY Small Business Confidence (MAR) 48.8 49.0 47.9 European Session GMT CCY EVENT EXP PREV IMPACT - CHF Total Sight Deposits (MAR 25) - 482.5b Low - CHF Domestic Sight Deposits (MAR 25) - 418.4b Low 08:00 EUR Eurozone M3 Money Supply (YoY) (FEB) 5.0% 5.0% Medium 09:15 USD Fed's Williams Speaks in Singapore - - Medium 10:00 GBP BOE's FPC Publishes Statement - - Medium Critical Levels CCY Supp 3 Supp 2 Supp 1 Pivot Point Res 1 Res 2 Res 3 EUR/USD 1.1056 1.1123 1.1159 1.1190 1.1226 1.1257 1.1324 GBP/USD 1.3895 1.4057 1.4156 1.4219 1.4318 1.4381 1.4543 --- Written by Ilya Spivak Currency Strategist for DailyFX.com To receive Ilya's analysis directly via email please SIGN UP HERE Contact and follow Ilya on Twitter: IlyaSpivak
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