Created
: 2024.09.16
2024.09.16 18:33
Despite a mixed batch of US data last week, investors seem to be favouring a 'front-loaded' scenario for the Federal Reserve's easing cycle. This is premised on the view that if the Fed has decided that the time has come for rate cuts, then why not get rates back to some kind of neutral level as quickly as possible without sparking a panic, ING's FX strategist Chris Turner notes.
"Currently, the market seems to be pricing a 41bp cut this Wednesday and has also brought forward and lowered the timing of the terminal rate in this easing cycle to something like 2.75% in just one years' time. This is what the OIS forwards market is telling us currently. Our house view remains that Wednesday's decision is an exceptionally close call."
"With US rates continuing to fall but equity markets largely holding onto gains, the soft landing narrative remains dominant. This should be a bearish environment for the dollar - even though overseas markets do not look particularly attractive. For example, the weekend data dump from China showed another batch of sluggish data that - without more focused stimulus from Chinese authorities - suggests policymakers will again be missing their 5% growth target for this year."
"Today's data calendar is quite light, but we do not rule out DXY drifting down to recent lows at 100.50/60 in quiet markets."
Created
: 2024.09.16
Last updated
: 2024.09.16
FXStreet is a forex information website, delivering market analysis and news articles 24/7.
It features a number of articles contributed by well-known analysts, in addition to the ones by its editorial team.
Founded in 2000 by Francesc Riverola, a Spanish economist, it has grown to become a world-renowned information website.
We hope you find this article useful. Any comments or suggestions will be greatly appreciated.
We are also looking for writers with extensive experience in forex and crypto to join us.
please contact us at [email protected].
Disclaimer:
All information and content provided on this website is provided for informational purposes only and is not intended to solicit any investment. Although all efforts are made in order to ensure that the information is correct, no guarantee is provided for the accuracy of any content on this website. Any decision made shall be the responsibility of the investor and Myforex does not take any responsibility whatsoever regarding the use of any information provided herein.
The content provided on this website belongs to Myforex and, where stated, the relevant licensors. All rights are reserved by Myforex and the relevant licensors, and no content of this website, whether in full or in part, shall be copied or displayed elsewhere without the explicit written permission of the relevant copyright holder. If you wish to use any part of the content provided on this website, please ensure that you contact Myforex.
Myforex uses cookies to improve the convenience and functionality of this website. This website may include cookies not only by us but also by third parties (advertisers, log analysts, etc.) for the purpose of tracking the activities of users. Cookie policy