IronFX Daily Commentary by Charalambos Pissouros | 13/01/2017
January 13, 2017 9:07 am
Fed Chair Yellen maintains an upbeat tone on the economy • Even though she didn’t comment on interest rates, she was quite optimistic on the broader economy, the labor market as well as inflation. • Her upbeat comments support the case that the Fed may hike rates 3 times this year. Thus, USD rebounded, recovering some of its recent losses. • But we are not so sure on 3 rate hikes. For now, we see the risks tilted towards 2, not 3 hikes. • A dovish Committee (voters) and a strong USD could be factors that lead to only 2 rate hikes. • Does this mean we see a USD reversal? –No. • We continue to expect USD to perform better than most G10 this year, but the pace of future appreciation may be much more gradual than the last 2 months.
Today’s highlights: • US: Retail sales for Dec. are exp. to accelerate notably. The forecast is supported by many gauges of sales. This could prove USD-positive. Also, PPI for Dec. and prel. U of M consumer sentiment index for Jan. • Speakers: Philadelphia Fed President Patrick Harker.
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Fed Chair Yellen maintains an upbeat tone on the economy
• Even though she didn’t comment on interest rates, she was quite optimistic on the broader economy, the labor market as well as inflation.
• Her upbeat comments support the case that the Fed may hike rates 3 times this year. Thus, USD rebounded, recovering some of its recent losses.
• But we are not so sure on 3 rate hikes. For now, we see the risks tilted towards 2, not 3 hikes.
• A dovish Committee (voters) and a strong USD could be factors that lead to only 2 rate hikes.
• Does this mean we see a USD reversal? –No.
• We continue to expect USD to perform better than most G10 this year, but the pace of future appreciation may be much more gradual than the last 2 months.
Today’s highlights:
• US: Retail sales for Dec. are exp. to accelerate notably. The forecast is supported by many gauges of sales. This could prove USD-positive. Also, PPI for Dec. and prel. U of M consumer sentiment index for Jan.
• Speakers: Philadelphia Fed President Patrick Harker.
Join us for more technical and fundamental analysis: http://www.ironfx.com
To get the latest Forex trading news you should:
• Download the IronFX Research app: http://goo.gl/jhQIxO
• Like us on Facebook: https://www.facebook.com/IronFX
• Follow us on Instagram: https://www.instagram.com/ironfx
• Follow us on LinkedIn: https://goo.gl/wSEbPN
• Follow us on Twitter: https://twitter.com/IronFXGlobal
• Circle us on Google+: https://www.google.com/+Ironfxglobal
• Subscribe to our Channel: http://bit.ly/1foFmCU
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