FXStreet (Edinburgh) – Currency Analyst at BTMU Lee Hardman believes the Fed will now hike rates at some point in the last part of the year.
Key Quotes
“The US dollar has also been undermined by dampened expectations for Fed rate hikes with the timing off the first rate hike seen as more likely now towards year end”.
“Heightened investor concerns over global growth especially in China, the potential for a stronger US dollar if the renminbi devaluation prompts another wave of emerging market currency weakness, and renewed weakness in commodity prices have all combined to dampen expectations for Fed rate hikes”.
“If the renminbi devaluation remains modest then the impact on Fed policy is likely to prove limited, although a sharper economic slowdown in China and resulting negative spill over impact would be of greater importance for the US economy”.
(Market News Provided by FXstreet)