Last FOMC minutes before hike?

18 November, 2015

Market expectations for the Fed to commence its rate tightening cycle next month are around 66% now and although this does not mean it’s certain that they will move on 16th December the feeling is that the chances are far higher than they were in the run up to the September meeting. The dollar has been on the bid since the middle of October benefiting most from weakness in the euro which is hovering some 200 pips above its April lows, where a break below 1.0460 would see levels not seen for over twelve years. What is now a very crowded trade if we see a break below here then we can expect heightened calls for parity on EURUSD.

The FOMC minutes to be released at 19.00 GMT are the highlight of today’s session. Remember that the October meeting took place before the impressive nonfarm payroll release earlier this month, so the focus will be more on the Fed’s discussion around the global economy and the risks that they have previously been looking closely at, namely China. Investors will also be very keen to hear if there is any more detail as to the likely path and timing of rate hikes beyond the first one should it come next month, as this will determine the strength of any subsequent leg higher in the dollar.


Source link  
Risk Appetite Returns

North Korea official news agency reported on Monday that leader Kim Jong Un will watch the actions of the United States for a while longer before making a decision to fire missiles at Guam...

US-Korean Tensions Rattle Markets

Markets were cautious on Wednesday, as safe-haven assets pushed higher after tensions grew between the US and North Korea. Markets are concerned...

Global Manufacturing Grows

Recent data releases have shown that global manufacturing saw an increase in July, further confirming global economic momentum has carried into H2...


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...

  


Share: