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11 Mar 2015
Fed’s rates hike unlikely this year? – DB
FXStreet (Edinburgh) - In the view of analysts at Deutsche Bank, the Fed could find it difficult to start its hiking cycle this year.
Key Quotes
“Whether there'll be a happy ending to the Fed story in 2015 is intriguing”.
“One of the reasons we think they'll find it tough to raise rates or at least justify anything close to the dots over time is due to the likely adverse market reaction across large parts of the world to such a move”.
“Also the continued strength of the dollar seems to be leading to more conversations along the lines of at what point does dollar strength stop simply being a sign of a relatively strong US economy and start being a reason to doubt the continuation of that strength”.
“As we have said many times, can the Fed afford to position policy in a way that ensures they lose out in the ongoing subtle global currency war? This story won't go away”.
Key Quotes
“Whether there'll be a happy ending to the Fed story in 2015 is intriguing”.
“One of the reasons we think they'll find it tough to raise rates or at least justify anything close to the dots over time is due to the likely adverse market reaction across large parts of the world to such a move”.
“Also the continued strength of the dollar seems to be leading to more conversations along the lines of at what point does dollar strength stop simply being a sign of a relatively strong US economy and start being a reason to doubt the continuation of that strength”.
“As we have said many times, can the Fed afford to position policy in a way that ensures they lose out in the ongoing subtle global currency war? This story won't go away”.