Sterling focus in run up to FOMC

15 September, 2015

Investors continue to gear up for Thursday’s FOMC rate decision with markets drifting sideways but with a bearish bias, meanwhile volatility remains at elevated levels compared to the rest of 2015. There is a palpable nervousness with the decision nearing as there is still a chance the Fed will move to raise rates for the first time in nine years, despite calls from many major institutions such as the IMF and World Bank to delay a hike until later. The focus remains on the incoming US economic data and today we see retail sales and industrial production which could easily impact the dollar.

Ahead of the US data we see UK inflation figures which could see a dip back into deflationary territory given expectations are for a Y on Y figure of 0.0% and the price of oil has remained anchored. This data comes ahead of Wednesday’s unemployment and average earnings release, then retail sales on Thursday, so a busy week for sterling and could be even more so if the Fed does hike that evening as markets expect the Bank of England to commence their tightening cycle soon after the Fed’s.


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: