The U.S. dollar is mixed against major pairs ahead of the March Federal Open Market Committee (FOMC) meeting. The Fed is expected to deliver its fist interest rate lift under Chair Jerome Powell. The Fed will publish its rate statement on Wednesday, March 21 at 2:00 p.m. Eastern. Strong data has fuelled the dollar revival but the drama in the White House and tariff uncertainty are keeping the currency down against safe haven currencies.
Equity markets have taken it on the chin this week with trade worries and White House drama in the forefront. While the tape has given bulls fits, price action in the S&P is attempting to stabilize at the level in which it broke out on Friday’s jobs data.
Gold has now recovered from being negative to close the day higher on three occasions in as many days since Friday. The bulls’ resilience is noteworthy, but not exactly remarkable as there has not been much follow-through yet. Indeed, the metal was trading lower again at the time of this writing.
Yesterday was a tough session for market bulls, and we took our licks. CPI data was in line with expectations and this did pave the road higher for equity markets; the S&P traded to a new swing high of 2807.25 and the Nasdaq extended to a new record. Not so fast though, the White House took another dramatic turn with the release of Secretary of State Rex Tillerson.
Equity markets are coming out of a mixed session sandwiched in between critical economic indicators; while the E-mini S&P 500 was unchanged yesterday, the Nasdaq gained 0.5% and the Dow lost 0.5%. Gold surprisingly lost ground overnight, yesterday’s session should have been constructive enough to keep the sellers at bay through CPI data at 7:30 a.m. Central.
The Nasdaq 100 has been lurking within 2% of its all-time high since late February and Friday’s monster gain of 1.8% finally achieved the inevitable.February’s Consumer Price Index data is due out Tuesday at 7:30 a.m. Central. The Core read that excludes food and energy is the most closely watched data point. Industrial Production, Fixed Asset investment and Retail Sales are due out of China on TuesdayEvening.
The U.S. dollar ended up mixed against major pairs after the release of the U.S. nonfarm payrolls (NFP) report for February and news of a potential meet up between North Korea and American leaders. The NFP was a mixed bag with a monster 313,000 jobs gain but underperforming wage growth at 0.1%.