THE US dollar gained across the board last month on the expectation of interest rate rises from the Fed. The rate differential play across countries is probably one of the few consistent drivers of currency flows. A prime example has been expectations of a higher
Since last week, geopolitical risk has been back, with a lower
The potential shift from a market following interest rate differentials to a fully fledged risk-off scenario - with lower stock markets and a stronger US dollar and Japanese yen - will be on everyone's mind over the next 12 months. The reason for this is simple: most Fed rate increases have lowered the pace of US GDP growth, sparking a stock market sell-off. Markets are now pencilling in a first US Fed rate rise by mid-2015, and the central bank is expected to have ended all new asset purchases before the end of 2014.
This is not the only thing troubling markets: what will happen if the situation in
Do you want to know more about FX and how to trade it? Read http://bit.ly/LEARNFX2014
Most Popular Stories
- Frightfully Fun Films Return for Halloween
- Hollywood Eager to Grasp Hispanic Market
- Cloud Lifts Microsoft's Quarterly Results
- Would Soccer Be Richer Without Small Clubs?
- Pfizer Approves $11 Billion Buyback Plan
- IS Funded by Black Market Oil Sales, Racketeering
- Weekly Jobless Claims Rise but Remain Low
- Sears Denies Store Closings, Layoffs Report
- Cape Cod Building Mussel Industry
- Teresa Giudice Must Serve Time in Prison