Thursday, August 21, 2014

FOMC minutes- rate hike may be earlier than expected

FOMC is always a mover for USD pairs and equity markets. This time, the report highlighted the strength in the US economy, causing the USD to extend its bull run and equities made gains.

The key point was that the creation of new jobs may spur a rate hike earlier than expected. Interest rate parity shall dictate that whenever there is a rate hike, the currency will extend gains.

The full FOMC minutes.

No comments:

Post a Comment