The Federal Reserve performed a long-anticipated interest rate hike on Wednesday. While the dollar had a confusing reaction to the announcement at first, it rallied by the end of trading session and continued to move up during the start of the Thursday’s trading session. The Fed raised its benchmark interest rate by a quarter of a percentage point to 0.5 percent on Wednesday, performing the first hike in almost a decade. Yet the dollar was not sure how to react to the news, rising after … “Dollar Rallies After Fed Hikes Rates for First Time Since 2006”
Month: December 2015
Get ahead of the Fed – MM #80
In this episode we focus on the historic Fed decision: the expected raise, market impact, the path ahead and more. We then cover the AEC. You are welcome to listen, subscribe, provide feedback and pledge support on Patreon. Historic Fed Decision: It’s hard to exaggerate when discussing the first rate hike in the US since 2006. We make … “Get ahead of the Fed – MM #80”
Rate Hike: Fed hike trajectory important; Carney message is
Jane Foley, Senior FX Strategist for Rabobank, joined Zak Mir, technical analyst for ShareProphets.com, and Mike Ingram, Strategist for BGC Partners, to discuss an array of topics including the presumed Fed rate hike this evening, as well as focus on the Euro and Yen, plus a view on Carney and the UK economy. Fed trajectory … “Rate Hike: Fed hike trajectory important; Carney message is”
EUR/USD: Trading the German IFO Business Climate
German Ifo Business Climate is a monthly composite index of about 7,000 businesses, which are surveyed about current business conditions and their expectations concerning economic performance over the next six months. A reading which is higher than the estimate is bullish for the euro. Here are all the details, and 5 possible outcomes for EUR/USD. … “EUR/USD: Trading the German IFO Business Climate”
Australian Dollar Edges Higher Before Fed Announcement
The Australian dollar ticked higher today as the market was preparing itself for the upcoming monetary policy announcement from the Federal Reserve. Trading was jittery due to uncertainty regarding the Fed decision and the market reaction to it. The Fed is going to announce its decision as of 19:00 GMT today. Most market participants anticipate monetary tightening, but it is unclear how it would affect the market. While the US dollar was … “Australian Dollar Edges Higher Before Fed Announcement”
Sterling Down as Wage Inflation Falls
The Great Britain pound fell today after the employment report showed that wage inflation decreased, giving Britain’s central bank little incentive to start raising interest rates. There were good news in the report as well, but it hardly affected the sterling. The data from Office for National Statistics showed that average weekly earnings rose 2.4 percent in the period between August and October of 2015 compared to the same three … “Sterling Down as Wage Inflation Falls”
USD: Trading The FOMC Dots – Deutsche Bank
Towards the all important Fed decision (see all the updates) and the expected high volatility, here is a view from Deutsche Bank about the dot plot. When markets look beyond the initial hike, this is the first place to look at: Here is their view, courtesy of eFXnews: The Fed will maintain maximum ‘optionality’ to … “USD: Trading The FOMC Dots – Deutsche Bank”
USD: Trading The Fed – Morgan Stanley
Today is Fed Day (see all the updates) and the next direction for the dollar remains somewhat mysterious. Here is the view from Morgan Stanley: Here is their view, courtesy of eFXnews: Barring a shock, the FOMC will lift the federal funds rate for the first time in nearly a decade on Wednesday, says Morgan Stanley. … “USD: Trading The Fed – Morgan Stanley”
Pre-FOMC: Time To Hike – SEB
Towards the all important Fed decision, here is a preview from SEB, that covers the main points. Where will the US dollar stand afterwards: Here is their view, courtesy of eFXnews: LIFTOFF ALMOST GUARANTEED. In all likelihood, the Fed will raise the fed funds rate by 25 basis points thus taking the target range to … “Pre-FOMC: Time To Hike – SEB”
Gold Uncertainty Spurs Wait-and-See from Purchasers
Gold’s woes continue on Monday and into Tuesday as its price continues to drop as the US dollar strength story continues. This year, gold prices are lower by approximately by 9%.The dollar is climbing ahead of the much-anticipated Federal Reserve interest rate decision tomorrow. The FOMC will begin its deliberations today and market participants are … “Gold Uncertainty Spurs Wait-and-See from Purchasers”