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  
Oil set to rebound

The Oil price has finally settled in today’s trading after a week of heavy losses on the back of profit taking and some say that the price may once again head higher. Following a solid month of gains...

New sanctions won't hurt gold

The gold price is stable in early Asian trading today after falling heavily yesterday after a planned missile test from North Korea failed to eventuate...

Gold down but not out

The gold price has bounced back in today’s trading after racking up losses on the back of a deal between the white house and Congress and some say yesterday was just a small...


Oil to remain capped at $50

The oil price is making another run for the $50 mark today over concerns about the damage that Hurricane Harvey has caused, but below it will struggle...

Gold down on profit taking

Gold has pulled back in the last 3 days on the back of profit taking but by no means is the rally over with so much uncertainty around us at the moment...

Gold finds strong support

US President Donald Trump’s rhetoric has once again underpinned the gold price after he threatened to shut down the government at a rally in Arizona...


Gold price is stabilizing today

The gold price is stabilizing today after suffering its biggest loss in 6 weeks yesterday on the back of strong retail sales numbers from the US...

Gold down on jobs report

The gold price remains under pressure today following on from last Friday’s losses after the release of solid employment numbers from the US...

Gold technical review

As we noted in last Friday’s report the gold price would make a charge for the next resistance level of is $1,265 which it has comfortably broken over the last 2 trading session and has now...

  


Share: