5 Aug 2015
Lockhart sent equities and EUR/USD lower – Danske Bank
FXStreet (Edinburgh) - Morten Helt, Senior Analyst at Danske Bank, reviewed yesterday’s comments by D.Lockart.
Key Quotes
“Atlanta President Lockhart says the Fed is close to being ready to hike interest rates”.
“In an interview in the Wall Street Journal Lockhart said that the economy is ready for the first rate increase and it would take a significant deterioration in the data to convince him not to move in September”.
“Lockhart’s is one of the first to comment since the FOMC meeting in July, delivering a very clear signal that the FOMC is seriously considering a rate hike in September”.
“The hawkish rhetoric from Lockhart sent US equities lower while yields on 2Y US government bonds rose 7bp and the 2-10Y US yield curve steepened with 10Y yields rising almost 10bp”.
“In the FX market, the USD rallied and EUR/USD trades close to the 1.0860 level this morning - more than 1.2% lower than yesterday”.
Key Quotes
“Atlanta President Lockhart says the Fed is close to being ready to hike interest rates”.
“In an interview in the Wall Street Journal Lockhart said that the economy is ready for the first rate increase and it would take a significant deterioration in the data to convince him not to move in September”.
“Lockhart’s is one of the first to comment since the FOMC meeting in July, delivering a very clear signal that the FOMC is seriously considering a rate hike in September”.
“The hawkish rhetoric from Lockhart sent US equities lower while yields on 2Y US government bonds rose 7bp and the 2-10Y US yield curve steepened with 10Y yields rising almost 10bp”.
“In the FX market, the USD rallied and EUR/USD trades close to the 1.0860 level this morning - more than 1.2% lower than yesterday”.