Fretting over the Fed

11 September, 2015

The dollar was in retreat in the latter stages of yesterday, to levels last seen at the early part of the month (at least on the dollar index), with most of the gains coming against the euro and Aussie dollar. Sterling was also buoyed by the fact that we saw rates on hold and one member still voting for higher rates, whereas there were some thoughts that we would see that one member fall back into line with the majority. For today, we have just PPI inflation data in the US to look at come 12:30 GMT, but we are unlikely to see markets get overly excited by that.

We are getting into the home stretch with regards to the outcome of the September FOMC meeting, the result of which will be known Thursday of next week. The volatility of stocks markets has calmed down in recent sessions, but the Fed has to look a lot further that then day to day volatility of financial markets when setting policy. Markets reflect the here and now, whereas policy is set for the coming year to 18 months, as its impact works with lags on the underlying economy. The continued downward pressure on global commodity prices is a factor that is likely to keep them from hiking rates come next week in my opinion, but opinions are divided, both in markets and on the FOMC itself. As such, the statement will be crucial in shaping the market reaction and determining whether a further easing will be priced for this year.


Source link  
Oil hits 3-month lows

On Monday, the dynamics of oil was in the spotlight on a combination of negative factors by both the potential demand and the supply part. Asian markets...

Fed Monetary Policy Report to be released

This report is release twice a year and provides an insight into the conduct of monetary policy and economic developments and prospects for the future for the...

The Pound continues to weaken

Cable (GBPUSD) took a hit yesterday as Boris Johnson resigned from the Cabinet following the earlier decision by David Davis to part ways...


The latest Brexit proposals

The UK's Brexit Secretary David Davis has resigned along with two junior ministers, Steve Baker and Suella Braverman, over PM May's latest softer Brexit proposals...

Some ECB members want earlier rate hike

The markets remain subdued after yesterday's 4th of July celebrations in the US. Despite this Oil headlines are dominating the markets once again. US President Trump...

Gold has played out as a double top

The gold chart has played out as a double top with a break under 1300.00 signalling a move down to 1240.00 from its highs at 1365.00. We have now hit the 1240.00...


Gold chart has played out as a double top

The gold chart has played out as a double top with a break under 1300.00 signalling a move down to 1240.00 from its highs at 1365.00. We have now reached...

President Xi warns of Full Scale Trade War

Risk on sentiment returned briefly yesterday as markets retraced some of Monday’s selloff but sentiment in Asia has declined overnight. The PBOC cut...

USD extend losses in risk adverse markets

Stock markets fell hard yesterday as trade tensions deepened and the consequences of such action has investors worried. US Company Harley Davidson...


In the past 24 hours Bitcoin has gained 1.76% and reached $7523.19. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -0.3727% and is now at $1.1646. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 4.35% and is now at $469.055. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Daily Forex Market Reviews


Forex Currencies Forecasts


Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets90%
2FXTMFXTM88%
3HYCMHYCM86%
4FIBO GroupFIBO Group79%
5FxProFxPro78%
6FXCMFXCM73%
7AvaTradeAvaTrade69%
8HotForexHotForex68%
9XMXM68%
10Alfa-ForexAlfa-Forex66%
  


Share: