mask Dollar sets Pace against Rivals on Positive FOMC Minutes, while Focus shifts back to Trade Negotiations

21/ 02/ 2019

Dollar sets Pace against Rivals on Positive FOMC Minutes, while Focus shifts back to Trade Negotiations

Daily Update - 21st February 2019

Yesterday’s Markets

  • US FOMC Minutes

Yesterday’s explained

The FOMC meeting minutes was released yesterday, some more details on how the Committee is divided on policy and sentiment towards the economy was of particular interests. As anticipated US FOMC showed signs of Interest Rate Hikes to be done sooner than expected. Dollar seem to be on the limelight for the past week on Positive news arriving from Washington on smoother Trade Deal options in place between US & China.

 

Today’s Focus

  • Germany Harmonized Index & Markit Manufacturing
  • Euro PMI Composite
  • US Markit Manufacturing

Today’s Market

For the euro, It’s a particularly busy day ahead on the economic calendar. Key stats scheduled for release include prelim February private-sector PMI numbers out of France, Germany, and the Eurozone and finalized inflation numbers out of France, Germany, and Italy. On the data front, EUR sensitivity to the manufacturing numbers will be heightened as economic indicators across major markets raise more red flags.Outside of the numbers, the ECB’s monetary policy meeting minutes will also be released later in the day that will likely be in stark contrast to the FED’s outlook on growth. While the minutes will be a reminder of the ECB’s dovish outlook on growth, updates from ongoing trade negotiations between the U.S and China would likely limit any downside from the ECB’s dovishness.

For the Pound, There are no material stats scheduled for release through the day. Brexit will remain the area of focus as British Prime Minister Theresa May looks to resolve the backstop issue that has become the bone of contention on both sides of La Manche.

It’s a busy day ahead for the Greenback. Key stats scheduled for release include December durable goods orders, February private-sector PMI numbers for Philly and the U.S, the weekly jobless claims figures and January existing home sales numbers.Following a relatively upbeat outlook on U.S economic growth, in spite of a string of softer numbers out of the U.S of late, today’s figures will provide more evidence on where the economy is heading. There will be nowhere for the Dollar to hide this afternoon, with all of the data expected to have an impact.