Three Rate Differentials to Note | Forex Factory

  • Three Rate Differentials to Note

    From marctomarket.com

    During this holiday period, participation is light and order-driven activity can push prices more than usual. Investors should not let the noise and gyrations obscure the bigger picture. We continue to place the divergence of monetary policy at the center of our narrative. Barring a significant negative surprise from the labor market, we expect the Fed to hike rates again, with March as the most likely timeframe. We are cognizant that the recent US data has disappointed, and that the Atlanta Fed's GDPNow warns that the US economy is tracking 1.3% annualized growth in Q4. A notable headwind that has emerged is ... (full story)

Comment Options
AnniLi
Dec 28, 2015 4:24pm
Permalink
The unemployment rate actually rose by nearly 0.5% in November but not enough to print 5.1% rather than (unchangd) 5.0%. The evidence for USD higher rates is thin ice indeed and it would not take much of same sort of numbers across the board making the FED retreat into its shell. The world story is lack of growth rather than too much inflation so FED is out of step. German unemployment rate is way below the USA rate - its Europe dragging the chain. This divergence trading theme is a very dangerous one.
Reply

  • Related Stories

There are no posts to display for these settings.
  • Story Stats