FXStreet (Delhi) – Research Team at ING, suggest that over the next week, the spotlight will naturally be in the US on the Fed, although disappointing labour market data this month has crushed any residual hope for an October hike.
Key Quotes
“In fact, the best we can hope for is a veiled hint that a rate hike is still possible this year (ie, at December’s meeting). However, data since the labour report has, with a few exceptions, been disappointing. Whilst a December hike remains our base case, it will start to look like a push unless the numbers begin to stage a rapid improvement over the next few weeks.”
“The final nail in the coffin could be provided by renewed wrangling over the debt ceiling, which looks like it will come to a head at the end of the year and, if unresolved, could generate some unwelcome economic uncertainty.”
(Market News Provided by FXstreet)