According to CME Group’s FedWatch tool, markets are currently pricing the chance that the U.S. central bank will start cutting rates in March at 46.6%, up from 73.4% a month ago, as data has reinforced the view that the US economy remains resilient.
He dollar US rises this Tuesday, while operators They await the monetary policy decision of the Federal Reserve this week for clues about when the U.S. central bank could cut rateswhile the euro falls after preliminary data on the Eurozone’s Gross Domestic Product (GDP) for the fourth quarter.
Job openings data from the U.S. Department of Labor Statistics, to be released later Tuesday, will offer a prelude to Friday’s payroll report.
The dollar index thus rises 0.03% to 103.49, as market participants remain cautious ahead of the two-day meeting of the Federal Reserve that begins on Tuesday.
Federal Reserve: the data that the market expects
With the Fed expected to keep interest rates steady, markets are focused on the tone the Fed Chairman takes, Jerome Powellin Wednesday’s press conference and in any hint of rate cuts in the near future.
According to CME Group’s FedWatch tool, Markets currently value the possibility that the US central bank will begin cutting rates in March at 46.6%up from 73.4% a month ago, as the data has reinforced the view that the US economy remains resilient.
Tuesday’s job opening numbers kick off a week of national employment data, which will culminate on Friday with the January U.S. payrolls report. The data gives new indications about the state of the world’s largest economy.
The euro is down 0.06% to $1.0826 following preliminary fourth-quarter GDP data in the euro zone, which narrowly avoided a technical recession in the final three months of 2023.
Sterling falls 0.2% to $1.2680 ahead of this week’s Bank of England policy meeting. On the other hand, the US currency fell 0.14% to 147.29 against the yen.
Source: Ambito
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