All to play for
Sceptical FX and rates markets looking at Fed (and world) through dovish-tinted spectacles
The US Federal Reserve (Fed) has cried wolf many times in the past nine months, preparing the market for a rate hike only to then back down and further cut its estimate of the appropriate policy rate. As a result, the sceptical US rates and FX markets’ natural tendency is to look at US and global data and events through decidedly dovish-tinted spectacles, giving weight to “negatives” while seemingly discounting all but the most compelling evidence pointing to a December hike. The past eight days are a case in point. Read more