Fed’s wording will be important, base case is still for a December hike – UBS

FXStreet (Córdoba) – After ECB President Mario Draghi indicated chances of further easing at last week’s ECB meeting, the focus shifts to the US Federal Reserve, said UBS team.

Key quotes

“The Fed board members’ meeting on Wednesday will be accompanied by only a statement and not a press conference. However, the statement’s wording will be important to see if a rate hike in December is still likely, or if the first rate hike since 2006 will be pushed out further”.

“Our base case is still for a December hike, and we continue to see the US dollar being supported”.

“Calendar also includes central bank meetings in Israel, New Zealand, Sweden, and Russia. For the first two, we expect no change in stance on monetary policy. We expect further easing in Sweden and do not rule one out in Russia”.

After ECB President Mario Draghi indicated chances of further easing at last week’s ECB meeting, the focus shifts to the US Federal Reserve, said UBS team.

(Market News Provided by FXstreet)