Fed rate hike likely in any meeting after June – Investec

FXStreet (Barcelona) – The Investec Team believes that the soft Q1 phase will hold back Fed from raising rates in the June FOMC meeting, but might start its rates normalization at any meeting after this.

Key Quotes

“The US Dollar struggled to gain ground during yesterday’s trade despite a solid US Retail Sales report for the first time in 2015. Whether the market felt the reading was not enough to spur the Fed into policy action, which still lags behind the strong consumer spending trends of mid-2014, or whether the market is already looking to reduce positions before next week’s FOMC meeting is unclear.”

“The likelihood of a Fed hike next week looks slim after a soft Q1 across the pond but since the ‘patient’ guidance has been dropped, we could technically see a Fed rate rise at any meeting going forward.”

The Investec Team believes that the soft Q1 phase will hold back Fed from raising rates in the June FOMC meeting, but might start its rates normalization at any meeting after this.

(Market News Provided by FXstreet)