FXStreet (Edinburgh) – In the view of Christin Tuxen, Senior Analyst at Danske Bank, a lift-off by the Federal Reserve next month is still deemed feasible.
Key Quotes
“Decent US retail sales yesterday helped to sustain belief that a first Fed hike in September remains a possibility (still our base case) despite recent China jitters”.
“While the July figures were merely solid, combined with upward revisions to previous months, the report on the whole added to the picture of a US economy which is in respectable shape heading into H2”.
“Notwithstanding the recent deflationary shocks from drops in CNY and oil alike, in light of the positive effect on the US consumer from the latter we reckon that the Fed remains keen to initiate a hiking cycle”.
“US Treasuries ended the day lower with 5Y yields leading the way up 7bp with yield increases concentrated in the short end of the curve as markets put a near-term Fed hike back on the agenda”.
(Market News Provided by FXstreet)