Another interest rate hike in March is a 'done deal' among market participants and a pause is likely to come after that in May. |
I don't think the Fed will surprise the market but it will see if there are any hints available from the statement. |
Long-term U.S. interest rates have risen as the market has started to price in the likelihood that the Federal Reserve will keep raising rates beyond 5 percent. |
The dollar maintained its strength inherited from last week but its upside is capped when nearing the 120-yen level. |
The dollar's rise was the result of position-adjustment with market developments overseas failing to give clear direction. |
The euro doesn't look like getting out of its recent range. |
The forecast of a narrowing of the trade deficit forecast is only after the record deficit last time. |
The market is closely watching if there are any other comments on the US economy or interest rate hikes as the Fed meeting (on January 31) is getting closer. |