-
Week Ahead: USD looks to Powell for support, BoE to carry on hiking
Markets will continue to process the Fed’s decision to pause or “skip” a rate hike at their June meeting last week. According to the CME Fed Watch tool, there is now a 74% chance of a 25bp rate rise at its next meeting in late July with a 26% possibility of no change. But markets then see a 22% chance of rates at 5 to 5.25% at its following meeting on 20 September. The FOMC decision was seen as a “hawkish hold” due to the new dot plot from officials indicating two more rate hikes this year. But markets have a different opinion again from the FOMC. There is clearly a broad range of views on the committee and ... (full story)