Dec is still a live meeting – ING

FXStreet (Guatemala) – The dual impact of an unexpectedly strong US labour report and recent comments from Chair Yellen, suggesting that December is still a “live” meeting, have prompted markets to increasingly price-in a rate hike before the end of the year.

Key Quotes:

“Next week, most of the attention will be on the Fed’s minutes from its October meeting, which will be closely scrutinised for further confirmation of the apparent shift in the FOMC’s outlook implied by the meeting’s statement.

On the data front, inflation will start what should be a fairly rapid ascent over the coming months as the effect of the oil plunge (most of which occurred around this time last year) filters out of the numbers.

Indeed, with core inflation also likely to be led higher by strong rental prices, we could see headline CPI approaching 2% by the end of 2016. Overall, this provides further evidence that the economic case against tighter monetary policy is looking increasingly unconvincing.”

The dual impact of an unexpectedly strong US labour report and recent comments from Chair Yellen, suggesting that December is still a “live” meeting, have prompted markets to increasingly price-in a rate hike before the end of the year.

(Market News Provided by FXstreet)