USD Higher on Hawkish Fed Comments

Dollar bulls were handed the baton after a Federal Reserve policy maker reinforced the chances for a U.S. interest-rate increase as soon as next month. European stocks climbed as gains in mining companies overshadowed HSBC Holdings Plc’s results.

The U.S. currency advanced against most of its major peers after Philadelphia Fed President Patrick Harker said a March hike isn’t off the table. Mining stocks climbed as surging commodities prices boosted corporate earnings. HSBC fell the most since August 2015 after its profit missed estimates. Gold slumped and oil climbed toward $54 a barrel.

Global equities are trading near a record after U.S. President Donald Trump’s election spurred optimism in economic growth amid signs of an inflation pickup. Yet there remains caution in the markets, with the dollar trading below this year’s highs and investors clamoring for detail on spending plans under Trump’s administration.

Bloomberg

Dollar Bulls Get a Free Pass

EUR/USD – Euro Slips Below 1.06 Despite Stronger German, Euro Mfg. Reports

MS

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Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.