• The dollar was on the defensive in Asian trading on Tuesday, after Chicago Federal Reserve President Charles Evans reinforced the perception that the U.S. central bank won't accelerate the pace of its interest rate hikes.
The dollar index, which tracks the greenback against a basket of six major rivals, edged down 0.1 percent to100.35 after falling as low as 100.02 overnight, its lowest since Feb. 7.
The dollar's index against a basket of six major currencies .DXY =USD stood at 100.17 on Tuesday, after hitting a six-week low of 100.02 on Monday.
The euro EUR= traded at $1.0737, off Friday's high of $1.07825, which was its highest level since early February.
Lower yields undermined the greenback's allure, softening the dollar to three-week lows near 112.485 yen JPY=.
• Sterling fell from a three-week high against the dollar on Monday, on the news Prime Minister Theresa May will trigger Britain's divorce proceedings with the European Union on March 29, launching two years of negotiations.
• The pound GBP=D3, which had been up as much as a third of a percent against the dollar in London morning trade, reversed course, falling as low as $1.2335 before recovering to around $1.2350 by 1730 GMT, still down 0.4 percent on the day.
• The Federal Reserve is on track to raise interest rates twice more this year after a policy tightening last week, and it could be more or less aggressive depending on inflation and fiscal policies from the Trump administration, a Fed rate-setter said on Monday.
• The public comments from Chicago Fed President Charles Evans were among the first since the U.S. central bank lifted its policy rate a notch last week, as expected. It also forecast roughly two more moves in 2017 in a nod to low unemployment and some inflation pressures.
• According to the CME Group' s Fedwatch tool, the current implied probability of a hike from 1.00 to 1.25 is at 6 percent at the May meeting and 52 percent for the June meeting, along with a 3 percent chance of an increase to a 1.5 rate.
• Trump goes outside D.C. for support on health bill!
• President Donald Trump is deploying an outside and inside strategy to fulfill his campaign promise to repeal and replace "Obamacare," seeking support beyond Washington before making an in-person pitch on Capitol Hill.
The Trump administration, after announcing plans to slash spending across much of the government, will recommend a 1.9 percent raise for federal workers to take effect in January, according to a budget document and a senior budget official.
The official, who was not authorized to comment publicly, said agencies have been told by the White House to build a 1.9 percent pay raise for civilian employees into their spending plans for the fiscal year that starts Oct. 1.
The proposed budget the administration released last week, boosting military spending by $54 billion and cutting non-military programs by roughly the same sum, made no mention of a raise. It was designed, though, as a "blueprint" and did not address many issues typically contained in budgets. The administration is scheduled to release a more detailed plan in May.
A preliminary blueprint for the Commerce Department instructs the agency to "factor in a 1.9 percent pay raise for civilian employees, to go into effect on the first pay period of January, 2018." Since such raises are government-wide, the increase would apply for all employees.
• Theresa May has informed the European council that she will trigger article 50 on Wednesday 29 March, but European sources have made clear that Britain could be forced to wait until June to embark on formal talks.
The prime minister’s decision to name the date on which the two-year Brexit clock will start ticking down came as her official spokesman also quashed speculation about an early general election.
Instead he made clear that the government’s focus was set to turn solidly towards the country’s EU exit, which is now guaranteed to be complete by the end of March 2019.
• Oil prices slipped on Monday despite news that OPEC was supportive of extending a six-month deal to cut output as investors continue to grapple with worries about growing U.S. oil output and high inventories.
Brent was at $51.67 a barrel, down 9 cents, at 11:53 a.m. EDT (1653 GMT). U.S. West Texas Intermediate (WTI) crude futures rebounded from losses, but were down 43 cents to $48.35 a barrel.
• Latest U.S. drilling data supported estimates for higher production, with 14 oil rigs added in the week to March 17 to 631, the most since September 2015, energy services company Baker Hughes Inc said on Friday.
Reference: Reuters, Xinhua, AP, Washington Post, Guardian
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