The last few weeks has seen the US economy produce some very upbeat market data; increasing CPI, PMI. This has caused investors to re-evaluate the possibility of a rate hike happening this year.
The US durable goods orders and personal spending figures released last week beat expectations. The ADP report, which was released today, showed that private sector job growth surged in January. This report caused the USD to increase. It is looking very steady, currently sitting above the 98.00 mark. All eyes are currently awaiting the fed beige book release later on today.
These upbeat data releases have increased the chance of a rate hike at the next policy meeting on March 16-17th. Despite the market consensus suggesting that the committee will not implement any interest rate changes this month, the probability of a possible rate hike is now sitting below 50%.