Wheat prices add nearly two percent as dollar tumbles

Wheat futures jumped nearly two percent in American trade as the dollar index slid to its lowest since the first half of November, 2016, according to their inverse relation, which follows a spate of data from Canada, the world's largest wheat exporter, and the U.S., the world's second largest exporter, and as the Federal Open Market Committee starts its meeting in Washington.
 
As of 08:48 GMT, wheat futures due on March 16 rose 1.63% to $420.75 a bushel from the opening price of $414.00, with a session-high at $421.25, and a low at $413.00, while the dollar index slid 0.95% to 99.48 from the opening of 100.36.
 
Earlier data from Canada showed the GDP growing 0.4% in November, besting expectations of a 0.3% rise, and compared to October's 0.3% fall, while on a yearly basis, the economy grew 1.6%, more than the 1.4% expected, and up from 1.5% in the previous reading.

 Canada's industrial production rose 0.4% in December, same as before, and missing expectations of 0.6%, while raw materials prices rose 6.5%, compared to 1.6% tumble in November, and besting expectations of a 2.8% rise.

From the U.S., the S&P house price index rose 5.3% in November, beating forecasts of 5.0%, and more than October's 5.1% rise, while the Chicago PMI fell to 50.3 in January, down sharply from December's 54.6, and missing expectations of 55.1.

An index tracking U.S. consumer confidence fell to 111.8 in January from 113.7, missing expectations of 112.6.

Now investors await the results of the first FOMC meeting of 2017, with policymakers expected to hold interest rates unchanged at between 0.50% and 0.75% after raising them by 25 basis points in December, while the payrolls report will be released on Friday, expected to show 170 thousand new jobs in January, and for the unemployment rate to settle at 4.7%, while average hourly earnings are expected to have risen just 3.0% this month.