The Fed's change of heart on interest rate hikes? | 10 Tháng Mười 2023

10 Tháng Mười 2023, GBP/USD

The Fed's change of heart on interest rate hikes?

GBPUSD trading plan:

Last week's hot U.S. jobs data and a Palestinian militants' weekend attack on Israel had put the dollar higher until comments from two Fed officials on Monday noted recent rises in long-term yields might negate the need for further hikes. "If long-term interest rates remain elevated because of higher term premiums, there may be less need to raise the Fed funds rate," said Dallas Fed president Lorie Logan -- a notable shift from previously hawkish rhetoric. Fed Vice Chair Philip Jefferson said the central bank would need to "proceed carefully" given the recent rise in yields. Futures-implied pricing for the chance of another Fed hike this year fell from above 40% last week to about 26% and markets also nudged up expectations for the size of rate hikes in 2024. Ten-year Treasury yields, which have been zooming, dived more than 13 basis points to 4.67%.

Investment idea: range 1.2180 -1.2270.

David Johnson
Analyst of «FreshForex» company
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