Rates lift-off in September still seems likely – DB

FXStreet (Edinburgh) - Jim Reid, Analyst at Deutsche Bank, believes a Fed’s rate hike in September remains on the table.

Key Quotes

“Taking a slightly closer look at what was a fairly uneventful Fed statement, Peter Hooper reckons the importance of the April statement was how the Committee saw recent and prospective economic developments”.

“The message was that growth has slowed and the improving trend in the labour market has passed due “in part” to transitory factors”.

“Conditions are still in place to support further improvement in the job market ahead and inflation is also expected to eventually return to desired levels”.

“Reading between the lines Peter thinks the statement is still consistent with a September lift-off as long as economic conditions develop in line with the Committee’s expectations”.

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The KBC Bank Research Team, expects dollar’s losses to remain capped and see room for a rebound in a daily perspective.
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EUR/USD pops, equities drop

With the entry of the European desks, we are witnessing a repeated pattern of a rise in the EUR/USD accompanied by a drop in the major European markets. The EUR/USD pair popped to 1.1160 levels, while the major European equities dropped 0.4% to 0.7%.
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