All eyes on the Fed

Well, we’re one day closer to it now at least.

But markets are not likely to find much conviction still until we get over the hump. US equities didn’t do a whole lot yesterday with a mixed showing, as the S&P 500 and Dow posted a minor advance while the Nasdaq fell slightly. We’re not likely to get much meaningful action today as well with markets settling into a bit of a pre-Fed lull already.

The bond market remains the key spot to watch, as outlined here yesterday. Meanwhile, with punters expecting a 75 bps rate hike by the Fed, it looks very much that policymakers should stick with that – otherwise, they would have said differently.

For the dollar, it’s all about looking to how the Fed views the economic outlook and if they see fit that the situation will keep their rate hike trajectory intact, it will be tough to pin down the greenback.

Tick tock, tick tock. Time couldn’t pass any slower now, can it?

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