Currency talk: The most telegraphed economic event this side of the 2010s draws closer
Jason Walls and CMC's Sheldon Slabbert discuss the global currency market news on NBR Radio and on demand on MyNBR Radio.
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The countdown has begun to the US Federal Reserve’s highly anticipated interest rate decision in December.
Highly anticipated may actually be an understatement as the Fed’s decision has been described as one of the most telegraphed economic decisions this side of the 2010s.
US jobs data – which is due out at the end of this week – will provide a little more clarity as to what the Fed will decide to do, come its December 16 meeting.
After an impressive increase in US jobs in October, CMC Markets trader Sheldon Slabbert says although the jobs data is “notoriously hard to pinpoint,” the jobs numbers have to miss by a long way to derail the Feds plans for a rate hike.
“[A rate hike] is pretty much baked into the cake right now, it’s not a 100% slam-dunk, but the Fed has really painted themselves into a corner here,” he says.
On the other end of the world, Mr Slabbert does not think the Reserve Bank of Australia (RBA) will be cutting rates at its meeting today.
“Domestic data has been a little more robust than they anticipated, so I think they will probably keep one up their sleeve for next year,” he says.
He does say it’s likely the RBA will give hints as to when it may cut rates again.
Despite its economic outlook not appearing as flash as in recent years, Australia still looking better than Europe right now.
Last week, European Central Bank president Mario Draghi left the door open for more economic stimulus in the eurozone.
With the Europeans looking to add more stimulus, and the US Fed looking to hike rates, Mr Slabbert says the prospect of USD/Euro parity at some point next year is not at all off the table.
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Tue, 01 Dec 2015
Tue, 01 Dec 2015
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Currency talk: The most telegraphed economic event this side of the 2010s draws closer
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