The first interest rate hike by the Fed is not yet in sight
15.05.2015, 16:28

The first interest rate hike by the Fed is not yet in sight

Despite comments by the Fed officials that the central bank may raise its interest rate hike in every monetary policy meeting, it is unlikely that it will happen in June. The most U.S. economic data remained soft in April. The U.S. retail sales were flat in April, missing expectations for a 0.2% increase, after a 1.1% gain in March. The U.S. industrial production dropped 0.3% in April, missing expectations for a 0.1% increase, after a 0.3% decline in March. Capacity utilisation rate fell to 78.2% in April from 78.6% in March. The Thomson Reuters/University of Michigan preliminary consumer sentiment index dropped to 88.6 in May from a final reading of 95.9 in April, missing expectations for an increase to 96.0. It was the lowest level since October 2014.

Only the U.S. labour market bounced back in April. The U.S. economy added 223,000 jobs in April, missing expectations for a rise of 224,000 jobs, after a gain of 85,000 jobs in March. The U.S. unemployment rate fell to 5.4% in April from 5.5% in March, in line with expectations.

If the U.S. economic data remains in the coming months, I think that there will be no interest rate hike by the Fed this year.

The weak U.S. economic data supports the euro as investors seems to ignore the Greek debt problem. The euro will test the level $1.1500 in the coming days. The deal between Greece and its creditors could lead that the euro will climb above $1.1500.

  • Name: Konstantin Meinhardt
Quotes
Symbol Bid Ask Time
AUDUSD
EURUSD
GBPUSD
NZDUSD
USDCAD
USDCHF
USDJPY
XAGEUR
XAGUSD
XAUUSD

© 2000-2024. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Bank
transfers
Feedback
Live Chat E-mail
Up
Choose your language / location