GerasimosPapagiannis
Recruit
- Messages
- 0
Fed is going to meet in less than a month from today, between then and now, a big debate will start about the chances of a possible rate hike this year. Last Friday, Yellen supported that the case for a rate hike has strengthened and she appeared confident that the USA economy will strengthen further. However, once more it was avoided to give a better indication as for when the next hike might be. Despite that, the next Fed meeting later in September is live, the market does not really believe that Yellen will hike but the December possibility has started to gain momentum.
At this stage we see the pullbacks for USD/JPY as a good buying opportunity and see high probabilities that the USD will have some gains against the JPY at least in a short – medium timeframe. Moreover, we see that the downside pressure for global equity market is very likely to continue with a moderate pace.
Key points:
* Fed Vice Chair Fischer’s said: ‘’ Yellen’s comments were consistent with a possible September rate hike and 2 rate hikes this year is possible’’
* The world’s largest pension fund (Japan’s Government Pension Investment Fund) has said the UK’s surprise vote in late June to leave the EU was partially to blame for a $52bn quarterly investment loss.
* Aussie falls to 4-month low
* Japan’s inflation falls the most in 3 years, BOJ under pressure
* Angela Merkel is under fresh pressure over her refugee policy.
* After Yellen speech last Friday the odds for a Fed hike rose to 42%, up from 22% on Aug 19
At this stage we see the pullbacks for USD/JPY as a good buying opportunity and see high probabilities that the USD will have some gains against the JPY at least in a short – medium timeframe. Moreover, we see that the downside pressure for global equity market is very likely to continue with a moderate pace.
Key points:
* Fed Vice Chair Fischer’s said: ‘’ Yellen’s comments were consistent with a possible September rate hike and 2 rate hikes this year is possible’’
* The world’s largest pension fund (Japan’s Government Pension Investment Fund) has said the UK’s surprise vote in late June to leave the EU was partially to blame for a $52bn quarterly investment loss.
* Aussie falls to 4-month low
* Japan’s inflation falls the most in 3 years, BOJ under pressure
* Angela Merkel is under fresh pressure over her refugee policy.
* After Yellen speech last Friday the odds for a Fed hike rose to 42%, up from 22% on Aug 19