Dollar hits one-month high on lingering chances of Fed hike
A growing number of major brokerages believe there is a real risk of the Fed delivering a rate hike this week, given the surge in oil prices during the month…
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Summary
A growing number of major brokerages believe there is a real risk of the Fed delivering a rate hike this week, given the surge in oil prices during the month and the escalation in tensions in the Middle East. Expectations for a rate hike of at least 25 basis points from the Fed at its policy announcement are pegged at 36.3%, according to CME FedWatch, up from 16% a week ago. Although a pause in US attacks on Iran pushed oil prices lower and somewhat eased inflation worries, US Treasury yields retreated only modestly compared with moves in other markets overnight. “The lack of meaningful buying at the front end of the Treasury curve has helped keep the US dollar well supported,” said Chris Weston, head of research at Pepperstone.
Furthermore, PACKED CENTRAL BANK WEEK The Bank of England and Bank of Japan are widely expected to keep interest rates unchanged at their meetings on Thursday and Friday, respectively, while maintaining a cautious stance on inflation. Investors will also look to US second-quarter GDP data and the Fed's preferred inflation gauge, core PCE inflation, this week for more clues on the health of the world's biggest economy. Markets are pricing in an 81 per cent chance for a hike at the central bank's September meeting.
In addition, Verbal efforts to support the Japanese currency have so far yielded muted results.
Cross-referenced from 3 sources.
Factual coreconfirmed by several independent voices
A growing number of major brokerages believe there is a real risk of the Fed delivering a rate hike this week, given the surge in oil prices during the month and the escalation in tensions in the Middle East.
reliability low1/2 sourcesExpectations for a rate hike of at least 25 basis points from the Fed at its policy announcement are pegged at 36.3%, according to CME FedWatch, up from 16% a week ago.
reliability low1/2 sourcesAlthough a pause in US attacks on Iran pushed oil prices lower and somewhat eased inflation worries, US Treasury yields retreated only modestly compared with moves in other markets overnight. “The lack of meaningful buying at the front end of the Treasury curve has helped keep the US dollar well supported,” said Chris Weston, head of research at Pepperstone.
reliability low1/2 sourcesPACKED CENTRAL BANK WEEK The Bank of England and Bank of Japan are widely expected to keep interest rates unchanged at their meetings on Thursday and Friday, respectively, while maintaining a cautious stance on inflation.
reliability low1/2 sourcesInvestors will also look to US second-quarter GDP data and the Fed's preferred inflation gauge, core PCE inflation, this week for more clues on the health of the world's biggest economy.
reliability low1/2 sources
Reported detailssecondary facts, each attributed to its source
Markets are pricing in an 81 per cent chance for a hike at the central bank's September meeting.
according to Channel News AsiaVerbal efforts to support the Japanese currency have so far yielded muted results.
according to Channel News Asia
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