As Default Risk Rises, Expect Sentiment Shift, Warns Commerzbank – Stay Alert!
Negotiations to prevent the US from defaulting on its debt have been postponed to next week. While this issue is not currently a concern for the foreign exchange (FX) markets, sentiment could change at any moment as the likelihood of default gets closer. Economists at Commerzbank stated that the USD reaction to a hypothetical US […]
“Job Report Sparks 70% Surge Probability: Are Traders Ready for May Rate Hike?”
Traders in Federal funds futures are now pricing in a nearly 70% chance of a 25 basis point rate hike by the Federal Reserve at its meeting in May. After the release of the March labor report, the probability of a rate rise increased from 49.2% to 67.4%, according to CME’s FedWatch tool. Analysts say […]