June on the table
June on the table
Anyway, this fact was well known; what the market did not expect was the relative compactness of the directory’s leaders on the will and the need to raise interest rates if the economic data confirm the current US economic trends. As frequently happens, when expectations and intentions are too far apart, there must be a push as to bring the parties together not to create havoc on the markets. This is what happened, ... the markets priced, with a almost zero probability, a rising in June, but now the probability has increased to about 40% and in September to about 60%. Therefore, at this point It seems that Fedex can bear the two increases for 2016…Brexit permitting!
The reaction on the market was the strengthening of the dollar and the weakening of precious metals. The cross Eur / USd rose from about 1.13 to 1.12, while gold and silver slipped respectively $ 20 for gold (from $ 1,275 $/oz to 1,254 $/oz) and 40 cents for silver (from 17.1 $/oz to 16.7 $/oz). Regarding euro, the declines have been less relevant for precious metals.