The British Pound immediately weakened against the dollar on Tuesday morning after UK inflation fell more than expected in February. Consumer price inflation eased to a 7-month low at 2.7% in February, down from 3% in January, as the impact of Sterling’s Brexit-fuelled selloff faded.
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.
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.