19 ordspråk av Neil MacKinnon
Neil MacKinnon
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The market is having a re-think about the Fed's intention on interest rates.
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All this has helped underpin a dollar bullish view and almost makes a rate hike on Nov 1 a certainty.
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This is a disappointing release ahead of the Fed meeting, but I don't think it will derail a rate hike next week.
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There is a whiff of stagflation here that will be disconcerting for financial investors.
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It's not clear how China will deliver further currency flexibility but certainly the pace of appreciation of the Chinese currency has picked up.
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Even allowing for the GDP upward revision, the data today has generally been regarded as disappointing and take the steam out of the dollar.
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Even allowing for the GDP upward revision, the data today has generally been regarded as disappointing and has taken the steam out of the dollar.
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The dollar has started the week on a firm note and the ISM numbers this afternoon are expected to confirm improving confidence.
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It is encouraging that the recovery is starting to build and today's data supports the prospect of a rate hike soon.
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I think that looking forward we'll start to see strong economic growth, ... I'm fairly optimistic that the economy will start to pull through in the next 12 to 18 months.
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As far as interest rates are concerned, zero growth puts a 50 basis points cut back on the agenda at this week's Federal Open Market Committee meeting.
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We've had a dollar sell-off in the latter half last week and a little bit of profit taking in late London trading.
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Whatever differences they've had, there does seem to be the same concern about inflation.
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The current account numbers were pretty awful and put pressure on the sterling.
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The dollar is going to prove resilient, and we could see further gains. Higher rates have supported the dollar all year, and with more work to do by the Fed, I can't see that changing.
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