Two Reasons the Fed May Hold Off on a Rate Hike
Sept. 15 — Bloomberg’s Joe Weisenthal talks about what he’s following ahead of today’s ‘What’d You Miss?’ Watch the show with Joe and Alix Steel every weekday at 4 p.m. ET on Bloomberg
Sept. 15 — Bloomberg’s Joe Weisenthal talks about what he’s following ahead of today’s ‘What’d You Miss?’ Watch the show with Joe and Alix Steel every weekday at 4 p.m. ET on Bloomberg
With China facing an economic slowdown and many questioning whether or not the nation’s government data presents a reliable picture of just how bad the situation is, metal prices have fallen to multi-year lows.
The GBPUSD pair fell significantly during the session on Monday, but turned back around to form a large hammer. With this, it looks like we are trying to break out to the upside but there is a significant amount of resistance at the 1.55 handle.
On Wednesday, the U.S. Federal Reserve is set to release its July meeting minutes, giving investors a glimpse into the bank’s discussions regarding an interest rate hike. At the moment, many believe there is a 50/50 chance that the bank will raise rates in September, though unforeseen economic conditions around the world could postpone those plans.
This week’s Federal Reserve meeting served as confirmation for investors that the bank is still planning to raise interest rates some time before the end of this year.
The GBPUSD pair broke much higher during the course of the session on Wednesday as we finally cleared the 1.58 level. Because of this, we feel that the market has broken out and it’s only a matter time before the British pound continues to go much higher against all currencies, not just the US dollar.
The EURUSD pair went back and forth during the course of the session on Wednesday, as we found the 1.12 level to be supportive. We believe that this market continues to bounce back and forth as we have no real chance of a significant trade at the moment.
The USDJPY pair took off during the session on Friday as the nonfarm payroll number came out much better than anticipated.
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Brent crude oil (BNO, quote) lost momentum on Monday morning after reports that Goldman Sachs had trimmed its forecasts for crude oil prices.