18 Feb 2015
FOMC minutes throw water over certainty of a June hike - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet, explained that there were plenty of fundamental facts able to move the market this Wednesday.
Key Quotes:
"The markets showed little reaction until late in the US afternoon, when the FOMC released the Minutes of its latest meeting."
"The Minutes were for the most dovish, but it's worth reminding they are almost one month old, and ever since the latest meeting, the employment sector has continued to pick up while the core CPI grew further, despite the main reading remains subdue and far below the ideal 2%."
"Chances of a rate hike in the US next June have reduced, but they remain as a possibility. In Europe, the Greek drama continued with PM Tsipras announcing they will submit a request for a loan agreement, which should not be confused with an extension of the ongoing program, as the country will like to skip the austerity measures linked to it."
"In the meantime, the ECB has approved a €68 billion two-week extension on emergency liquidity for Greek banks, according to Reuters. Today's US reports were for the most disappointing for January when it came to industrial production and housing starts, with downward Q4 revisions for both."
Key Quotes:
"The markets showed little reaction until late in the US afternoon, when the FOMC released the Minutes of its latest meeting."
"The Minutes were for the most dovish, but it's worth reminding they are almost one month old, and ever since the latest meeting, the employment sector has continued to pick up while the core CPI grew further, despite the main reading remains subdue and far below the ideal 2%."
"Chances of a rate hike in the US next June have reduced, but they remain as a possibility. In Europe, the Greek drama continued with PM Tsipras announcing they will submit a request for a loan agreement, which should not be confused with an extension of the ongoing program, as the country will like to skip the austerity measures linked to it."
"In the meantime, the ECB has approved a €68 billion two-week extension on emergency liquidity for Greek banks, according to Reuters. Today's US reports were for the most disappointing for January when it came to industrial production and housing starts, with downward Q4 revisions for both."