The Bank of Japan, Swiss National Bank and Bank of England all opted to leave rates unchanged. Notably, however, is the fact that there was a dissenter in the UK monetary policy committee who voted for rate hikes. This and more on the daily Forex news and trade opportunities.
March 17, AtoZForex – On today’s daily Forex news, we have some key data due, including the G20 Meetings, Canada Manufacturing Sales m/m, and the US Prelim UoM Consumer Sentiment.
#1 China unexpectedly hiked Rates few hours after Fed hike
Just a few hours after the US Federal Reserve announced its rate hike by 0.25%, China tightened monetary conditions across many of the PBOC’s liquidity-providing conduits. This has led market watchers to ask why such a swift response? As Bloomberg wrote, the coordinated “response suggests that pledges by the Group of 20 economies a little over a year ago in Shanghai to “carefully calibrate and clearly communicate” policies may not have been hollow after all.”
#2 Fed 2017 March rate hike impact: Who will take first hit?
Those who have revolving debt could expect the increases in their payments in the period of next 60 days. Homeowners with adjustable-rate mortgages will feel the hit when their loans get reset. However, savers most likely will not get much of the benefits for quite some time. The chief financial analyst at Bankrate, Greg McBride, has stated: “If the Fed hikes rates three times this year, that could make your next payment a doozy. Borrowers are “going to start to notice, and the cumulative effect becomes significant.”
#3 US Prelim UoM Consumer Sentiment
This is a survey of about 500 consumers which asks respondents to rate the relative level of current and future economic conditions. Forecast for a rise to 97.1 from 96.3, this could prompt a rise in the dollar. We also have the capacity utilisation rate and industrial production m/m due for release today. All of which are potential market movers.
#4 G20 Meetings
The G20 leaders are due to meet about a range of global economic issues including financial stability, in Germany. This meeting is particularly key, as Germany will press G20 members to sign off on a set of principles including free trade. This move may be perceived by the Trump administration as a challenge to its more protectionist stance. As reported by Reuters, Germany will stress the importance of global free trade in a document separate from the group’s main communique, G20 sources said.
#5 Australia 12-Month Consumer Inflation Expectations Dips
The consumer inflation, which is a key measure of Australia’s inflation situation declined slightly in March. Although the underlying trend pointed to firmer price growth in the year ahead. The Melbourne Institute’s 12-month gauge of inflation expectations was 4% in March, after falling to 4.1% in February. Inflation expectations reached 4.3% in January, the highest in almost three years. Also, the employment change fell to -6.4 while the unemployment rate fell to 5.9%, sending the Aussie down a tad.
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