When Fed doves cry – MM #74

The Fed adopted a more hawkish stance and this has implications for the USD, stocks and commodities all the way to the December. We begin by analyzing the statement, continue with discussing US growth in a new light, looking at China and preparing for the big events coming up.

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  1. Talking about December: The Fed didn’t go dovish but actually leaned to the hawkish side in the carefully scrutinized statement. The stakes are certainly higher than expected and this sent shivers in global markets.
  2. US growth: The headline GDP growth rate seems mediocre but the fall in inventories supports higher growth in Q4 and thus a rate hike.
  3. Chinese change: A lot of headlines came out of the Chinese plenum: will changing the child policy inspire growth? And what’s with their new 6.53% growth target? China looms large on all over the world.
  4. Preview for this week: It’s not only the NFP with its full buildup but also a key testimony from Janet Yellen, the BOE’s Super Thursday and quite a few other big events to start the month (including China of course).

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