Jeremy Stretch – Head of G10 FX strategy at CIBC – joins Zak Mir and Alessio Rastani to discuss next week’s FOMC meeting, and whether or not the Federal Reserve will make the move to raise the US interest rate.
Sanguine response from the Fed.
The markets have been oscillating in an attempt to gauge Janet Yellen and the rest of the Fed’s thoughts on interest rates, but the closer it seems to an impending hike, the more volatility has been present in the markets. Instead we’re now seeing more optimism as, despite arguably undervalued NFP numbers, US data has been good and a rate hike could be warranted says Stretch.
Emerging markets should not be a factor.
Despite their exposure to changes in the US interest rate, Jeremy Stretch believes that EM economies should not be a decisive factor in preventing the Fed from acting. While they may face more financial difficulty, he believes that they will also welcome the clarity that the move will bring.
