IronFX Daily Commentary by Marios Hadjikyriacos | 15/12/2016
December 15, 2016 10:06 am
FOMC delivers a hawkish hike and reignites the USD rally • Fed hiked by 25bps as was expected. Upbeat tone overall with regards to the economy. • “Dot plot” was more hawkish than previous. Added 1 more rate hike in 2017 (3 2017, 3 2018). • USD surged. Given also Yellen’s hawkish remarks, USD could remain supported for a while.
BoE to take the sidelines and maintain an upbeat tone • The forecast is for the BoE to keep its policy unchanged via a 9-0 vote. • Market action may come from the minutes accompanying the decision. • Data have been solid lately, so we expect optimistic rhetoric, which could prove GBP-positive.
Norges Bank to stand pat amid higher oil prices • Expectations are for no action. We agree, given above-target CPI and higher oil prices. • The statement could reflect this. An upbeat tone may bring NOK under buying pressure.
SNB is also unlikely to act, but will probably reiterate that CHF is overvalued • No official forecast available. Likely to stand pat. Reaction in CHF may be limited.
Today: • France, Germany & Eurozone: Prel. manuf. and services PMIs for Dec. • UK: Retail sales for Nov. are exp. to slow. May hurt GBP briefly, but focus will be on the BoE. • US: CPI for Nov. is exp. to accelerate. This could support USD somewhat.
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FOMC delivers a hawkish hike and reignites the USD rally
• Fed hiked by 25bps as was expected. Upbeat tone overall with regards to the economy.
• “Dot plot” was more hawkish than previous. Added 1 more rate hike in 2017 (3 2017, 3 2018).
• USD surged. Given also Yellen’s hawkish remarks, USD could remain supported for a while.
BoE to take the sidelines and maintain an upbeat tone
• The forecast is for the BoE to keep its policy unchanged via a 9-0 vote.
• Market action may come from the minutes accompanying the decision.
• Data have been solid lately, so we expect optimistic rhetoric, which could prove GBP-positive.
Norges Bank to stand pat amid higher oil prices
• Expectations are for no action. We agree, given above-target CPI and higher oil prices.
• The statement could reflect this. An upbeat tone may bring NOK under buying pressure.
SNB is also unlikely to act, but will probably reiterate that CHF is overvalued
• No official forecast available. Likely to stand pat. Reaction in CHF may be limited.
Today:
• France, Germany & Eurozone: Prel. manuf. and services PMIs for Dec.
• UK: Retail sales for Nov. are exp. to slow. May hurt GBP briefly, but focus will be on the BoE.
• US: CPI for Nov. is exp. to accelerate. This could support USD somewhat.
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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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