• The dollar drifted on Tuesday, with its earlier advance halted by investors taking a wait-and-see approach ahead of U.S. President Donald Trump's closely-watched Congressional address later in the day.
The dollar index was little changed at 101.150 .DXY against a basket of key currencies, after posting a modest gain the previous day, when it initially went as low as 100.690.
• Trump speaks to a joint session of Congress Tuesday night, and he's expected to discuss his bigger plans for defense and stimulus spending. He's also expected to address repeal and replacement of the Affordable Care Act, but markets are most interested in what he has to say about tax reform.
The markets will also be honing in on what Trump says about the Affordable Care Act, which Congress has been hoping to repeal and replace in the next month. If it seems there is progress on that front, it may be affirm that tax reform could be completed in a 2017 time frame. But if that remains sketchy, it may be a negative.
• The chances that the Fed will hike rates at its March 14-15 meeting have been creeping higher in recent days. By at least one estimate, the probability is now at 50 percent, after being in the teens just last week.
"This is what the Fed wanted," said Peter Boockvar, chief market analyst at The Lindsey Group. "Now, the Fed may not raise, but they wanted at least the flexibility to do it."
Central bank policymakers in the past have been loathe to tighten policy when the market is not anticipating such a move. The Fed last hiked in December, at a time when officials had telegraphed a move and the market had almost completely priced it in.
Hawkish statements in recent days appear to have pushed up the chances.
• Crude oil edged higher on Tuesday, underpinned by high compliance with OPEC's production cuts even as the market remains anchored by rising U.S. production.
The benchmark Brent crude oil added percent to $a barrel by GMT, while West Texas Intermediate crude oil was little changed at $a barrel.0.2 56.03 0736 54.06
Reference: Reuters, CNBC
Thai
Eng