-
What's Next For The Fed, ECB, EUR/USD? - NAB
The way the central bank stars are currently aligning, with the ECB broadly expected to ease on 3 December and the BoE not joining the Fed in the rate hike camp (potentially not before 2017) points to further USD gains ahead. But it also begs the question of how long before Fed officials will be crowing that the USD is an issue and needs to be watched? Until that point arrives we assume the Fed raises the target range of the Fed funds rate by 25bps to +0.25% to 0.5% on 16 December. We believe the Fed will want to impart a view that future hikes will be gradual and will use the dot points to this end as a messaging ... (full story)