Philadelphia Fed President Patrick Harker said the central bank should consider another hike as early as next month if the U.S. economy continues to improve, while Chicago Fed President Charles Evans also said he expects two more rate increases this year.
The dollar rose for a fifth straight session on Thursday, pressuring commodities and Asian share markets after yet another Federal Reserve official talked up the chances of more than one increase in U.S interest rates this year.
If the dollar can keep its footing .DXY it will notch up the first weekly gain in a month against a basket of major currencies. [USD/]
The euro eased to $1.1175 EUR=, leaving it well off last week's top of $1.1342. Sterling GBP also slid to $1.4109 GBP= on concerns the attacks in Brussels would aid the campaign to leave the European Union in June's "Brexit" vote.
Sales of new homes bounced back in February, another sign of continued, if subdued, momentum in the housing market.
New home sales ran at a seasonally adjusted annual pace of 512,000, the Commerce Department said Wednesday. That was the highest since December, and was just below the consensus forecast of 515,000 among economists surveyed by MarketWatch.
February’s rate was 2% higher than January’s, but 6.1% lower than year-ago levels. But the tally in February 2015 was unusual; there were 501,000 new homes sold all year. January figures, initially reported as a 494,000 rate, were revised up to 502,000.
Oil prices tumbled 4 percent on Wednesday, with U.S crude settling below the key $40 per barrel mark after a sixth straight week of record highs in stockpiles that traders warned could cut short the market's two-month long rally.
Oil took a further knock when data showed crude stockpiles had risen by three times the amount expected in the latest week. U.S. crude CLc1 fell a further 22 cents to $39.57 a barrel, after sliding 4 percent on Wednesday. Brent LCOc1 lost 12 cents to $40.35. [O/R]
US commercial crude oil stocks rose 9.357 million barrels to 532.535 million barrels in the week ended March 18, Energy Information Administration data showed Wednesday.
It appears The IEA has come to the same reasoning as we have been pointing out for weeks - "freezing" production at what is already the highest output levels ever is "meaninglesss." As Reuters reports, Saudi Arabia is the only country with the ability to increase output, a senior executive from the International Energy Agency (IEA) said on Wednesday. This reality check appears to have stalled crude's exuberant run as WTI pushed below overnight API "build" lows.
Reference: Reuters, Market Watch, Platts, zerohedge
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