Greek vote paves way for rate hikes

16 July, 2015

Both of the most likely central bank candidates for commencing monetary policy normalisation have this week been vocal about the increased chances of them raising interest rates soon. With the bailout agreement on Greece earlier in the week this removed one of the major risks to global financial markets giving the Governor of the Bank and Federal Reserve’s Chairwoman good reason to take a more hawkish approach on rates. Now that the Greek parliament has voted in favour of the terms of the bailout this has provided instance justification for their positions. Mark Carney and Janet Yellen have been jostling for many months to try and provide as much guidance as possible to the market on their outlook for rates, often having to back track and adjust their approach to policy making, but this time they are sending a clear message to investors. Risk assets have recovered well following the Greek bailout agreement, but many indices are still well below their 2015 highs. The S&P 500 tested its 200 day moving average only days ago and has some way to go to convince buyers that the bull run isn’t over, so the key levels of 2,135 to the upside and 2,060 to the downside will be watched closely.

Today’s ECB meeting is an important risk event and then Yellen completes her two day testimony to US Congress so we’ll see if the mild dollar strength from yesterday can continue.


Source link  
USD Index Retesting Significant Lows

The Economic calendar for today is very light, with main events in focus for the European trading session concentrating around German PPI...

Economic calendar is relatively light

Today is Martin Luther King’s Birthday, which is a Bank Holiday in the United States. As a result, the Economic Calendar is relatively light today...

US Tax Bill passes

On Wednesday, the US Senate approved the tax bill 51 for and 48 against, while the House of Representatives gave it final approval, passing it for the second time in two days after...


US dollar 'treading water'

USD is treading water ahead of the expected enactment of President Trump’s tax bill. The initial euphoria of lower corporation tax, that many...

CB Monetary Policy Unchanged

Thursday saw the latest Monetary Policy Committee (MPC) report from the Bank of England. The BoE stated that further modest increases...

No Surprises as Fed Raises Rates

The Federal Reserve, as expected, raised its benchmark interest rate by a quarter of a percentage point, to a range of 1.25% to 1.5%. The latest hike...


CB meetings dominate the week

With no impactful economic data releases on the calendar today, the markets are focusing on a plethora of Central Bank meetings scheduled...

No Surprises from BoC & ADP

In an unsurprising move, the Bank of Canada decided to hold its benchmark lending rate at 1%, after two small hikes earlier in 2017. The BoC stated...

Moderate Gains for USD

On Monday, the US Commerce Department released Factory Orders data for October, indicating that the continued strength in the Manufacturing...

  


Share: