Finally Something For The FED To Chew On - Forex News by FX Leaders

Finally Something For The FED To Chew On

Posted Thursday, September 29, 2016 by
Skerdian Meta • 1 min read

The rhetoric of the FED members has shifted from dovish to hawkish recently. It came as a surprise to me because they were pretty dovish a few months ago when the US economic data was quite upbeat. Now that they decided to turn hawkish the economic data is turning dovish.

Yesterday and today the FED members have been on another chat session lasting more than 24 hours. Yellen, Kashkari, Evans and Co. (who can remember them all) seized the opportunity to burry it in the head of all forex traders that an interest rate hike is coming.

At least, the forex market didn't call their bluff this time, the US economic data today didn't let them down. The trade deficit was about $4 billion lower than the expectations, the Q2 GDP was revised higher to 1 4% from 1.3% in the last reading and the unemployment claims beat the expectations once again.

Remember, the FED made it clear that the next rate hike will be based mostly on the employment/unemployment numbers. So, if we keep seeing this sort of employment figures, which is very likely, the rate hike in December is a done deal.

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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