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Market Update

EncoreFX’s daily market updates are written by our experienced and professional dealing team.

USD Improves on Hawkish Fed Comments

Published February 21, 2017
  • The US dollar moved higher this morning after both Philadelphia Fed president, Patrick Harker, and Cleveland Fed president, Loretta Mester, noted potential for an interest rate hike next month
  • Loretta Mester said late on Monday that she would be comfortable raising rates at this point if the economy maintained its current performance; market implied odds for a March rate hike stand at 20%, June odds are at 70%
  • Fed officials may cause more bullishness for USD today during three separate speeches scheduled at 8:50 AM EST, 12:00 PM EST and 3:30 PM EST
  • Euro zone business activity rose this month at its highest pace since April 2011; French, German, and overall euro zone PMI numbers were all above 50, indicating expansion in services and manufacturing
  • Oil prices rose substantially this morning moving towards strongest levels since early January 2017; OPEC secretary general, Mohammed Barkindo, noted high compliance in the OPEC deal while aiming for even fuller compliance
  • Baker Hughes data on US oil rig count on Friday showed the number of active US rigs drilling for oil rose by six last week, the fifth weekly increase in a row

Chart (1) Eurozone PMI Since 2016