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  
All Eyes on Central Banks

Markets were, for the most part, little changed on Wednesday as traders waited for today’s Bank of Japan and ECB rate decisions. Earlier today...

Dollar Bears

UK Consumer Price Index (CPI) data was released on Tuesday showing inflation easing for the first time in nearly 10 months, retreating from the near 4-year high touched in May...

More Record Highs for Equities?

Early indications from Asia this morning are pointing towards a strong day for global equities, continuing the momentum from last week...


US Data brings on USD bulls

U.S. job growth surged more than expected in June and employers increased hours for workers, with signs of a labor market strengthening that is likely...

Biggest Quarterly Drop in 7 Years

USD recovered marginally on Friday, but had its biggest quarterly decline against several currencies in nearly 7 years following hawkish signals...

Markets look to Central Bankers

Asian Equities traded higher on Tuesday approaching near two-year highs on Tuesday as USD strength helped exporters...


Global Economic Optimism Continues

Global equities moved higher on Monday as optimism continued to improve on global economic growth. However, USD...

BOJ Monetary Policy Remains Steady

The Bank of Japan maintained their monetary policy on Friday whilst upgrading their assessment of private consumption...

Final Confirmation for a June Rate Hike

The crucial US labour market data for May will be released today, June 2nd at 13:30 BST. It includes non-farm payrolls...

  


Share: