UNITED STATES (VOP TODAY NEWS) — This week, investors will continue to wait for reports of a breakthrough in trade negotiations between the US and China and will pay attention to updated forecasts for the Fed’s interest rate hike. In addition, the US central bank may announce its plans to complete actions to reduce its balance sheet.
According to the forecasts of most analysts, on Wednesday, the Fed will keep its monetary policy unchanged as a result of its two-day meeting, and US central bank officials will update their forecasts for a further increase in interest rates. In January, the Fed indicated that it would show patience with a further increase in interest rates amid fears of a slowdown in global economic growth.
According to analysts, the Bank of England, like the Fed, on Thursday will keep from changing monetary policy. At the same time, any actions to change monetary policy by the central bank of the United Kingdom are possible only after the situation regarding Brexit is clarified.
Also, market players will be interested in the EU summit, which will begin on Thursday. First of all, it concerns whether the representatives of the European Union agree to a postponement of Brexit. Secondly, it is important whether the EU will insist that the delay be at least a year.
On Friday, the US dollar fell, registering the most significant weekly decline in the last three months due to the release of disappointing US economic data.
In February, US industrial output fell for the second month in a row, and business activity in the manufacturing sector of New York State was below forecasts.
Published reports continued a series of weak US economic data and confirmed the correctness of the Fed’s low profile regarding further interest rate increases this year.
By the end of Friday’s trading, the US dollar index , which shows the purchasing power of the dollar against a trade-weighted basket of six major currencies, fell by 0.24% to 96.54. This is the most significant decline in the dollar index after the first week of December.
The euro to the dollar has changed slightly. The pair EUR / USD was trading at 1.1326 position.
The British pound finished the work week at 1.3296, slightly changing over Friday. However, this week it went up by 2%, which was the highest indicator of its growth since the end of January. Strengthening the pound due to the fact that the British Parliament voted to postpone the withdrawal of the country from the EU after the proposal was rejected on the “hard” Brexit.
“Markets welcomed the additional assurances that Brexit would not take place without an agreement. Currency markets took the news as positive. These ballots avoided the worst scenario for Brexit,” says Hugo Lanzoni, currency overlay asset manager at Neuberger Berman, a London-based company.
The yen rate changed slightly: by the end of the Friday trading session, the USD / JPY pair was trading at 111.45 after the Bank of Japan kept the interest rate unchanged.
Monday, March 18
In the UK will be published a report on the level of inflation in house prices.
In the eurozone will report on the trade balance.
Tuesday, March 19
The Reserve Bank of Australia will publish minutes of the last meeting of the monetary policy committee.
In the UK will be published a report on employment.
The ZEW Institute will publish a report on consumer sentiment in Germany.
Wednesday, March 20
The UK will publish inflation data.
The Fed will publish a decision on monetary policy, and the head of the central bank, Jerome Powell, will hold a press conference on the results of the decision.
Thursday, March 21
The financial markets of Japan will be closed due to the holiday.
In New Zealand, will report on GDP growth in the fourth quarter.
In Australia, a monthly employment report will be published.
The National Bank of Switzerland will publish a decision on the current monetary policy. The head of the Swiss central bank will hold a press conference.
EU leaders will gather in Brussels to discuss Brexit.
The UK will publish a report on retail sales and public sector borrowing information. The Bank of England will announce its interest rate decision.
In the US, there are data on the number of initial applications for unemployment benefits and business activity in the manufacturing sector of Philadelphia.
Friday, March 22
In the euro zone will be published data on business activity in the private sector.
In Canada, will be published reports on the volume of retail sales and inflation.
The United States will complete the financial week with a report on the sales of homes on the secondary housing market of the United States.
This article is written and prepared by our foreign editors writing for VOP from different countries around the world – edited and published by VOP staff in our newsroom.
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