USD backed off in the European market on Wednesday before interest rate decision , that against a basket of major and secondary currencies. It continued the losses which stopped yesterday within the recoveries from its lows in two weeks. This backing off was due to important data issued from the United States about the retail sales and consumer prices within February as well as the Federal Reserve’s decisions which were made in the end of its periodical meeting.
At 11:40 GMT, the USD Index was at 101.43 pips from the opening level 101.55 pips. It reached its highs at 101.58 pip and its lows at 101.30 pips.
The Index ended with 0.2% increase yesterday which is the first gain in four days due to the recoveries from its lows 101.01 pips in two weeks and data which is better than what is expected about producers’ prices in the United States in February.
At 12:30 GMT, the retail sales which are expected to rise by 0.2% within February from a rise of 0.4% in January will be issued. Except food and fuel, the retail sales of the same month which is expected to rise by 0.1% will be issued. The last reading showed a rise of 0.8%.
The Consumer Price Index of February which is expected to show the same previous reading with rise of 0.0% from a rise of 0.6% in January will be issued at the same time, except food and fuel prices which are expected to rise by 0.2%. The previous reading showed a rise of 0.3%.
New York Industrial Average which is expected to be at 15.3 pips within March from 18.7 pips in February will be also issued.
The Opening Monetary Policy Committee of the Federal Reserve Board will close its periodical meeting which was held since Yesterday to discuss the monetary policies which are appropriate for the US economic growth. Its decisions will be issued at 18:00 GMT. The majority of expectations show that the US interest rate will be increased by 15 pips to be (0.75%:1.0%).
In addition, the Monetary Policy Statement and Economic Expectation report will be issued at the same time. Janet Yellen, Chairman of the Federal Reserve, will comment at 18:30 GMT on the Federal Reserve’s decisions and the US future monetary policy.