Calm before a Fed storm?

14 September, 2015

The week has arrived where in a few days time we will see an end to the debate over whether the Fed is prepared to commence its tightening cycle this month or at a later date. There is still a minority that is of the view that the FOMC will announce a hike this Thursday, but it’s hard to see how a hike now will help investors given all that the financial markets have been though in the past few weeks, in particular emerging markets. The decision itself is arguably more important for the markets than anything else we’ve seen so far in 2015, namely the ECB’s launch of QE and near exit of Greece from the Eurozone, as this will be the first time the world’s biggest economy will see a tightening of monetary policy of nine years. It’s not just the US economy that will be affected and it’s no secret that emerging markets will see the knock effect as their currencies have suffered considerable weakness against the US dollar in recent weeks.

Today is quiet on the economic data front and investors seem content for now as we near Thursday’s decision, with European equities a little higher on the open. Data releases become more poignant as the week goes on with UK inflation data tomorrow a highlight where the Y on Y rate could dip back into deflation territory.


Source link  
Corporate Earnings Lift US Stocks

Last week the US President Trump stated on twitter...

Market Concerns Eased

The first-round voting of the French presidential election was revealed on Sunday night...

Dollar Plunged on Trump Second Statement

The dollar index fell to a 2-week low of 99.91 in the early hours...


Markets Eye on the First Trump-Xi Meeting

US President Trump and Chinese president Xi Jinping, are scheduled to meet today at Trump’s Mar-a-Lago resort in Florida...

Will the French Presidential Election affect EUR?

The first round of the French presidential election...

USD Firms Ahead of Q4 GDP Final Reading

The dollar index has rebounded noticeably from a 4-and-a-half-month low of 98.85, helped by outperforming...


Divergence Between Fed and BoJ

The March FOMC meeting will be held for two consecutive days from today. The interest rate decision will be announced at 18:00 GMT on Wednesday 15th March...

Market Volatility Expected Ahead of President Trump's Speech

In a speech that will be watched by millions of viewers in the United States and around the world, the President is expected to speak of his presidency and address pressing issues like his plans for health care, the tax system, the military, and his goals for his administration...

Gold Trades Below Resistance Ahead of the Fed and NFP

We will see the release of the US ISM Manufacturing PMI, and ISM Prices Paid for January, at 15:00 GMT on Wednesday 1st February...

  


Share: