USD Higher on Hawkish Fed Comments

February 21, 2017 Share Print 0

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

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Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA

Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.