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4 Mar 2015
USD grinding higher as rates wait for Fed – SG
FXStreet (Barcelona) - “Waiting for the start of the Fed rate-hiking cycle is eerily like waiting for Godot, with the associated frustration and uncertainty”, quotes Kit Juckes of Societe Generale, as he comments on the market expectations towards Fed rate hike, and further previews the US data releases ahead.
Key Quotes
“The market has already downsized the rate cycle so that it prices something far smaller than implied by the Fed's dots but even so, you can feel the angst in the market as we approach the business end of the week's economic calendar, with Treasury yields edging up, equities correcting, the dollar index making new post-2003 highs and emerging markets looking somewhat shakey (BRL,TRY notable).”
“Non-manufacturing ISM, Beige Book and ADP are out today. SG economists look for 56.7 on ISM and 255k on ADP, which would keep the debate about the possibility of a mid-year Fed rate hike alive and kicking.”
Key Quotes
“The market has already downsized the rate cycle so that it prices something far smaller than implied by the Fed's dots but even so, you can feel the angst in the market as we approach the business end of the week's economic calendar, with Treasury yields edging up, equities correcting, the dollar index making new post-2003 highs and emerging markets looking somewhat shakey (BRL,TRY notable).”
“Non-manufacturing ISM, Beige Book and ADP are out today. SG economists look for 56.7 on ISM and 255k on ADP, which would keep the debate about the possibility of a mid-year Fed rate hike alive and kicking.”