7 May 2015
Fed may have to wait till December 2015 to hike rates – Rabobank
FXStreet (Barcelona) - Jane Foley, Senior Currency Strategist at Rabobank, expects Fed to hike rates by 2015-end and USD to regain strength at a modest pace in months ahead.
Key Quotes
“Yesterday’s much weaker than expected April ADP employment report dealt another blow to confidence in the US economic outlook and undermined hope that tomorrow’s non-farm payrolls report will manage a headline as strong as the 230K printed market median.”
“In turn the market is continuing to question how long the Fed may have to wait before daring to hike rates. We maintain our long-held forecast that steady rates could prevail until December 2015 and, despite the USD’s current soggy tone, we suggest that a late 2015 rate hike is still consistent with the USD being able to regain some ground in the months ahead, albeit at a moderated pace.”
Key Quotes
“Yesterday’s much weaker than expected April ADP employment report dealt another blow to confidence in the US economic outlook and undermined hope that tomorrow’s non-farm payrolls report will manage a headline as strong as the 230K printed market median.”
“In turn the market is continuing to question how long the Fed may have to wait before daring to hike rates. We maintain our long-held forecast that steady rates could prevail until December 2015 and, despite the USD’s current soggy tone, we suggest that a late 2015 rate hike is still consistent with the USD being able to regain some ground in the months ahead, albeit at a moderated pace.”