Uncertainty surrounds Fed rate hike

July 29, 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.

Publication source
FIBO Group information  FIBO Group reviews

January 23, 2017
Japanese Yen is taking the heat
Looking at the daily chart of the Japanese Yen, we can see that the bullish engulfing has formed next to the 50% Fibonacci level, which has been broken on the weekly chart at the points of 125.853 and 98.935...
January 23, 2017
Main Macro Events This Week
President Trump has his feet under the desk in the Oval office and the tone of his inaugural speech and actions over the weekend reiterated his campaign themes to Make America Great Again...
January 23, 2017
UK stocks start the week on the back foot
The FTSE100 is under some selling pressure this morning and trading lower by around 40 points. The leading UK stock index posted its first weekly loss in over a month on Friday and has continued lower out the gate today. The pound is broadly higher on the day and has moved back above the 1.24 handle against the US dollar...

FOREX.com Rating
XM Rating
EXNESS Rating
FxPro Rating
 FXTM Rating
Fort Financial Services Rating

UKoptions Rating
99Binary Rating
Binary.com Rating
TropicalTrade Rating
OptionRally Rating
Beeoptions Rating