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Fed Hike Hype Growing, USD Gains - Forex News and Events

Fed Hike Hype Growing, USD Gains

Forex News and Events

Yellens comments support Hike but watch data

This will be a big week for enforcing expectations for a Fed summer Rate Hike, even providing granularity of either June or July. Speaking on Friday, Fed Chair Yellen sounded significantly less cautious on the possibility of a rate hike in the near terms. In our view, the market perception that is the FOMC is closer to a 25bp rate hike as long as the economic data maintains its steady strength. However, Yellen’s lack of clarity on timing and cautious assessment of the economy makes us wary of jumping on the rate hike bandwagon. On the state of the US recovery Yellen stated that the “economy is continuing to improve, we saw weak growth in first quarter of year. It looks to be picking up from data we monitor.” In regards to the policy path "I think for the Fed to gradually and cautiously increase our overnight interest rate over time and probably in the coming months, such a move would be



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Fed Hike Hype Growing, USD Gains - Forex News and Events

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