Holidays in the United Kingdom and the United States will make for a short trading week, but one that will be filled with economic data releases alongside new reports from US-China and US-North Korea relations.
The U.S. dollar is higher against most major pairs ahead of the President's Day long weekend. American economic fundamentals had a strong week, but failed to gain traction given the rise of political risk as Trump’s administration continues to send mixed messages to markets. The stock market and safe havens like gold and the Japanese yen finished higher against the dollar in a very political week.
“Waiting too long to tighten would be unwise; more policy adjustments will likely be needed if the economy remains on track.” A number of Fed officials chimed in Tuesday and Wednesday to reinforce Ms. Yellen’s message that they expect to raise short-term interest rates in coming months, perhaps as soon as March.