Fed rate hike drifting away

Fed rate hike drifting away. Summer is now coming to a close. Alongside the fading memories of the beach, is expectations for a September Fed the hike. US data continues to disappoint, suggesting that a September rate hike is now off the table. This week the focus will be on Fed speakers, who will provide plenty of short-term volatility inducing communication, however, is unlikely to shift consensus for interest rate path. Elsewhere, the UK data was solid in August, despite fears of a Brexit generated collapse. The healthy UK economic conditions prevented the BoE from cutting rate further yet Carney has kept the door open for easing down the road. Post-Brexit Europe has also held up well, with the exception of German manufacturing, keeping the ECB sidelined for now. At the accompanying press conference Draghi refused to provide any real insight into potential actions, powering Euro higher.

See full report

This article is a guest blog written by Peter Rosenstreich from Swissquote