Things to watch out for on Wednesday, February 15:
Financial markets traded in an upbeat but cautious tone during the first half of the day as investors awaited the release of the figures of inflation in the United States. The US Consumer Price Index rose at an annualized rate of 6.4% in January, better than the previous 6.5% but below the 6.2% expected.
Financial markets did not welcome the figures as inflation eased, but at a slower pace than expected. This means that the US Federal Reserve could continue to tighten monetary policy until it reaches its 2% target. Markets moved away from high-yield assets, with Wall Street falling sharply and the USD rising.
Comments from Dallas Federal Reserve Bank President Lorie Logan added pressure to stocks as she said “we must remain prepared to continue rate hikes for a longer period of time than previously anticipated.” For his part, the president of the Federal Reserve Bank of New York, John Williams, pointed out that the work to control inflation that is too high has not yet finished. Finally, Philadelphia Fed President Patrick Harker reinforced the point by saying they’re not done, but probably close.
On the other side of the pond, Gabriel Makhlouf, member of the Governing Council from the bank The European Central Bank (ECB) said on Tuesday that the ECB could raise rates above 3.5% and keep them that way for the rest of the year.
The EUR/USD pair traded between 1.0700 and 1.0800 to finally settle around 1.0730. GBP/USD peaked at 1.2268 but ended the day around 1.2160. The USD/JPY pair rallied and ended the day above 133.00.
The AUD/USD pair is trading around 0.6980 as markets await Reserve Bank of Australia Governor Philip Lowe’s testimony before the Senate. USD/CAD pared early losses and stands at the 1.3340 zone.
Spot gold fell to $1,843.22 but ended the day above $1,850 a troy ounce. Crude oil prices are little changed on the day, with WTI trading at $79 a barrel.
Did you like this article? Help us with your comments by answering this survey:
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
