• MTS Economic News_20180222

    22 Feb 2018 | Economic News

• The dollar rose to a one-week high against a basket of major currencies on Thursday, after minutes of the Federal Reserve’s January meeting showed policymakers were more confident of the need to keep raising interest rates.

The dollar index edged up 0.1 percent to 90.099. Earlier, it climbed to 90.166, the highest level since Feb. 13. That lifted it about 2.2 percent from a three-year low near 88.25 plumbed last week.

The dollar, however, lost ground against the yen, falling 0.4 percent to 107.36 yen.

Against the dollar, the euro touched its lowest level since Feb. 12 at $1.2265 earlier on Thursday, and was last steady on the day at $1.2277.

• Markets expect the central bank to enact three quarter-point increases this year, though there's currently a 30 percent probability assigned to a fourth.

• Expectations for a quarter-point hike at the Fed’s next meeting in March are currently 93.5 percent, according to Thomson Reuters data. The Fed has forecast three rate hikes in 2018.

• The Bank of England could end up needing to raise interest rates faster than investors expect, its chief economist told lawmakers on Wednesday, striking a slightly more hawkish tone than his central bank colleagues.

BoE Governor Mark Carney, appearing alongside Haldane, said there was no need to give a direct commitment on rates as markets broadly understood the BoE’s message - unlike in the months before November’s rate rise, the first in over a decade.

• The "best hope" for the impact of the Trump administration's $1.5 trillion tax overhaul on the U.S. economy is that it boosts investment and thus productivity, Minneapolis Federal Reserve Bank president Neel Kashkari said on Wednesday.

But whether it will do so and deliver faster economic growth in the process is unclear, he said at a dinner hosted by Bloomberg News and broadcast on the regional Fed bank's website.

"I'm not sure it's going to lead to a dramatic change in investment. ... I hope it does, that would be good for the economy as a whole," he said.

• Fed Governor Randal Quarles said in a speech Thursday that inflation running a little below target shouldn't stand in the way of future rate increases.

With the central bank expected to hike at least three times this year, the newest Fed member said he supports a continual gradual pace of increases. The Fed shoots for a 2 percent inflation rate that it believes represents an equilibrium growth level.

• Oil prices fell on Thursday, pulled down as a firmer dollar outweighed a report of a decrease in U.S. crude inventories.

U.S. West Texas Intermediate (WTI) crude futures CLc1 were at $61.15 a barrel at 0748 GMT, down 53 cents, or 0.9 percent, from their last settlement.

Brent crude futures LCOc1 fell 48 cents, or 0.7 percent, from their last close to $64.94 per barrel.


Reference: Reuters, CNBC

MTS Gold Co., Ltd.
40,42,44, Sapsin Road, Wang Burapha Phirom Sub-district, Pranakorn District, Bangkok, 10200
Tel. 0 2770 7777 Fax. 0 2623 9366 E-mail: support@mtsgoldgroup.com