Goldman Sachs economists on Thursday raised their expectations for interest rate hikes from the Federal Reserve this year. After waiting for two more, they now anticipate three consecutive increases of 25 basis points in March, May and June. With this, the rates would be between 5.25% and 5.5%.
“The market is recalibrating for the next few months. I think the most realistic will be 25 basis points in March and then another 25 basis points in May.”said Amo Sahota, director of Klarity FX. in San Francisco.
Data released Thursday showed the number of Americans filing new claims for jobless benefits unexpectedly dropped last week, with monthly producer prices in January posting the biggest rise in seven months.
The dollar index fell 0.2% to 103.83, after hitting 104.67 earlier in the session, its highest level since Jan. 6.
Sterling was up 0.48% at $1.2044 after falling earlier in the round to $1.1950, its lowest since Jan. 6. This despite the fact that British consumers unexpectedly increased their purchases in January.
Meanwhile, the euro rose 0.22% to $1.0696 after earlier hitting its lowest level since January 6 at $1.06125.
Source: Ambito
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