Topic: Fed Speeches and Oil Data Eyed, GBP Remains Key
It’s been a relatively slow start to trading on Thursday as investors absorb the FOMC minutes on Wednesday, weigh up the next move in sterling as it trades around its all-time low and look ahead to the EIA crude inventory data.
We’ve been through a busy volatile period for the financial markets and while I don’t for a second think it’s passed, we may just be saying them take a little breather so far today. The FOMC minutes on Wednesday didn’t really tell us anything we weren’t aware of already, which is why the reaction to them was fairly muted. If anything, they reaffirmed the belief that a rate hike in December looks quite likely, with a number of officials showing concerns about the recession risk associated with not raising rates. Market expectations for a hike in December remain around the crucial 70% level which the Fed has historically sought before raising rates so as to avoid causing any unnecessary turbulence in the markets.