Uncertainty surrounds Fed rate hike

29 July, 2016

The Australian dollar is trading higher today following on from Yesterday’s decision from the US Federal Reserve to keep interest rates on hold.

At 5.15pm (GMT) the Aussie dollar was trading at US75.09c up from US74.88c at close of trade yesterday.

Although the Fed decided to keep rates on hold the tone of the following statement was more upbeat than last time and has led some to believe that a rate hike in December is definitely possible,

"They clearly have set the stage for a potential rate hike in September, but they didn't want to commit themselves," said Kathy Jones, chief fixed income strategist at Charles Schwab.

 "You can tell they're feeling a bit more confident." She added.

With US presidential elections coming up and overall global uncertainty surrounding global financial markets some analysts predict that the Fed may raise rates before the end of the year although they will certainly be cautious,

"The statement has a bit better tone, reflecting significantly better data relative to expectations over the last six weeks," said Joseph LaVorgna, chief U.S. economist at Deutsche Bank.

 "However, the Fed has gotten wise to the fragility of markets. They kept in that they're still monitoring financial conditions, so even though many things broke positively for the Fed since their last meeting, they want to be extra cautious." He added.


Source link  
Pound slumps on interest rate talk

The pound slumped to its lowest level today post-election, following on from yesterday’s losses after comments...

Euro has reached a top

The Euro has continued to tumble today, still reeling from yesterday’s bullish Fed speech and some believe that further losses are on the cards...

Its a good day for gold

The gold price has surged higher in late European trading today, travelling in the opposite direction of the US dollar as a round...


Gold could surge higher

The gold price is taking a breather today after making a run for the $1,300 level on the back of US dollar strength as traders...

Opec cuts won't work

The oil price racked up its fourth straight day of gains today after Saudi Arabia and Russia said a deal to cut production...

Pound awaits Fed decision

The British pound has come under pressure late in the European...


Gold tanks on French election

The gold price has pulled back sharply today after yesterday's French election results which saw both...

Pound surges on election news

The British pound jumped to a 4 month high...

Pound bounces on strong data

The British pound is trading higher today after a significant rise in the services sector...

  


Share: