Fed statement fuels fluctuations in global exchange markets

Last week, the market revolved around the Federal Reserve's Monetary Policy meeting, as the Fed, as widely expected, dropped the "patient" pledge from its statement, opening the door to a possible rate hike in June, said a report.
However, the FED downgraded the expected pace of growth and inflation dividing views on whether a rate hike will occur in June or later, the report issued by National Bank of Kuwait (NBK) said on Sunday.
The number of Americans filing new claims for unemployment benefits rose marginally last week, indicating the labor market remained on solid footing despite slowing economic growth, it added.
Initial claims for state unemployment benefits increased 1,000 to a seasonally adjusted 291,000 for the week ended March 14, it noted.
US manufacturing output fell in February for the third straight month as the production of automobiles and a range of goods dropped, the latest indication of slower economic growth in the first quarter, it showed.
According to the report, activity has slowed down in recent months, constrained by a harsh winter, strong Dollar and lower crude prices, which have forced companies in the oil field to either postpone or cut back on capital expenditure projects.
US housing starts plummeting in February by the most in four years as extreme weather forced American construction companies to cut down on the number of building sites, it pointed out. Meanwhile, German investor confidence rose for a fifth month in March, supporting a strengthening recovery in Europe's largest economy, it said.
The German economic growth accelerated in the fourth quarter as lower oil prices and a weaker euro supported consumption and bolstered business confidence, it added. The Swiss National Bank kept a charge on some cash deposits steady, but said it would remain active in foreign exchange markets to weaken what it sees as a "significantly overvalued" franc, it noted.
The Bank of England's most recent policy meeting showed that the Monetary Policy Committee voted unanimously to keep rates on hold and its quantitative-easing program unchanged, it concluded.