Alot of buzz in the media about Janet Yellen and FOMC tonight or rather 2am Singapore time.
Is she going to surprise with a rate hike?!
Market talk is July…………….September……………November………….take a dart and throw it on the board!
Personally, I don’t think she will surprise the market by hiking rates, although, I do believe she will shed some light on how she is going to access the US economic and interpret its projections going forward. This should provide some clues as to when?!
Recently, she has been spending time talking about the world economy and how it’s not doing too well. While non farm payrolls has been trending above 200K, the last two months has been showing a slight downward movement despite the stronger number last month of 280K versus forecasts of 222K.
Housing is still a mixed bag of information. Retail sales as well.
However, whatever Janet is going to say will provide CLARITY and that in itself will be USD positive.
Just checked to do a put option till Friday GBP and EUR averages about 80bps. Am I prepared to gamble 80bps?
Let me think about it in the next few hours and update all of you.
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