Back
15 Jan 2015
Markets price‐in a delay in US interest rate hike – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Omkar Godbole, believes that markets have started to price-in a probable delay in US interest rate hike, further anticipating markets to push rate hike expectations to late 2015 or early 2016.
Key Quotes
“The money markets have already started pricing‐in a delay in the interest rate hike. The interest rate futures indicate markets do not see a 25 bps rate hike before September 2015.”
“Following the dismal advance retail sales data released in the US yesterday, the 30‐year yield in the US fell to a record low of 2.395%. Moreover, the weak retail sales data contradicted the Federal Reserve’s assumption that fall in energy prices shall lead to an increase in the consumption.”
“Thus, the negative rates across Europe, coupled with increased possibility of a big QE program from the ECB next week, and weak data in the US, markets are likely to push rate hike bets in the US far out in 2015 or early 2016.”
Key Quotes
“The money markets have already started pricing‐in a delay in the interest rate hike. The interest rate futures indicate markets do not see a 25 bps rate hike before September 2015.”
“Following the dismal advance retail sales data released in the US yesterday, the 30‐year yield in the US fell to a record low of 2.395%. Moreover, the weak retail sales data contradicted the Federal Reserve’s assumption that fall in energy prices shall lead to an increase in the consumption.”
“Thus, the negative rates across Europe, coupled with increased possibility of a big QE program from the ECB next week, and weak data in the US, markets are likely to push rate hike bets in the US far out in 2015 or early 2016.”