FXStreet (Mumbai) – The FX strategy team at RBS believes the Fed may refrain from raising rates due to turbulence in the Chinese equities and its negative impact on other Asian markets and due to weaker commodity prices.
Key Quotes
“The weaker trend in global commodity prices and weaker trends in economic data in less developed markets, including several large Asian countries, suggests that the Fed may be more reluctant to hike rates in coming months.”
“Other Asian equity markets outside of China failed to benefit much from the upswing in Chinese equities over the last year, but all appear to be significantly undermined by their recent retreat, highlighting weaker investor confidence in the region.”
(Market News Provided by FXstreet)