Rate hike expectations are always changing and its important to keep track of them because they reflect what investors are pricing in.
Here are the latest numbers and highlights (compared to last week)
Fed - One 25bp rate hike expected by Q1 2012 > Minor increase in implied policy changes
BoE - 50bp rate hike priced [...]

Posted in 2011 british pound forecast, 2011 cad forecast, 2011 euro forecast, Australian Dollar, ECB, Fed rate hike, Federal Reserve, aud/usd, australian dollar forecast, ecb rate hike, forex blog 1 Comment »

Compare the changes made to March FOMC statement with the Jan one.

FOMC Statement January 26, 2011
Information received since the Federal Open Market Committee met in December confirms that the economic recovery is continuing, though at a rate that has been insufficient to bring about a significant improvement in labor market conditions. Growth in household spending [...]

Posted in 2011 dollar forecast, Fed Rate Cut, Fed Rate Cut Expectations, Fed rate hike, Federal Reserve, forex blog No Comments »

The Federal Reserve is gearing up for tomorrow’s FOMC announcement. Here’s a look at how the economy and economic data has fared since the last Fed meeting:

Posted in 2011 dollar forecast, Federal Reserve, forex blog No Comments »

I have written my own piece on How Oil Prices Impact the U.S. Dollar but Jens Nordvig of Nomura has an equally thorough take that is worth reading:
What does the spike in oil prices mean for the dollar?
Recent memories suggest that higher oil prices are bad news for the dollar. First, we have been [...]

Posted in 2011 dollar forecast, Federal Reserve, Oil, dollar rally, forex blog, oil dollar, oil record high 2 Comments »

Over the past 3 weeks, central banks around the world have made a number of comments that have affected rate hike expectations. On Jan 27th, I showed where rate hike expectations were at the time and since then a number of interesting changes have occurred.
First, the market is now pricing in a 25bp rate [...]

Posted in 2009 british pound forecast, 2010 dollar forecast, Australian Dollar, Bank of Canada, Bank of England, British Pound, Canadian Dollar, ECB, Fed rate hike, Federal Reserve, eur/usd 2 Comments »