Will the Fed Hike Interest Rates in March? 

03 March 2017 by News Desk   |   SHARE  

This week saw the House of Lords state that the Brexit bill needed to be amended to protect the rights of EU nationals living in the UK post-British exit say currency experts FC Exchange.

However, prime minister Theresa May has clearly stated that the bill needs to pass unamended. Commons will vote on it later in the month and will be the last hurdle for the PM who’s keen to trigger Article 50 and officially begin proceedings. When the formal British exit begins, the pound is likely to be unpredictable against other majors as investors anticipate lengthy trade discussions and the possibility of the UK leaving the EU without a deal.

The US dollar has rallied by 2.5% in the market this week as politics plague both the euro and pound exchange rates. However, a soft ISM non-manufacturing figure in Friday’s stateside trading could put a little dampener on things. There are a lot of speeches to look to on Friday by Federal Reserve officials and central bank chief Janet Yellen at various points throughout the day. Any discussion of US interest rate hikes could pique the interest of investors and offer the US dollar further support to rally. In the past 10 years the Fed has hiked rates twice, but sentiment is heating up that there could be more on the cards in the near future.

Disclaimer: This economic update is provided by FC Exchange a Global Reach Group Company, industry leaders in foreign exchange. Authorised affiliates are permitted to reuse content.

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