Imminent US interest rate decision

Tomorrow at 7pm we will hear the answer to one of the most debated questions in markets across the world over the past couple of weeks, will the FED raise interest rates from the current 0.5% level this time round? Fed funds futures is currently posting the likelihood of a rate hike of between 0.25% and 0.5% - with 0.25% the more likely - at 97% while all 120 economists in a Reuters poll on Monday 12th December expect a rate hike following a string of recent solid US economic data releases.

Therefore if you have a US Dollar purchase requirement it may be advisable to act sooner rather than later.

If the FED decide to raise interest rates it could lead to high levels of capital inflows into the US economy and thus see the US Dollar gain across the board against all major currencies as investors flock to the currency in order to benefit from the highest rates seen in the US for more than 7 years. With the interest rate decision at 7pm tomorrow evening, if you have a US Dollar buying requirement it is worth getting in touch with your personal and experienced currency broker here at to discuss the possibility of setting up automatic orders to take advantage of market movements outside of trading hours.

Key economic data releases still to come for the US

While the possibility for a US interest rate hike will take centre stage this week, retail sales are released on Wednesday at 1:30pm. With expectations for a second drop in a row since September - September 1%, October 0.8% - the consensus for November is 0.4%. Furthermore, Thursday sees a wealth of economic data published, with initial and continuing jobless claims alongside consumer price index released at 1:30pm and manufacturing PMI data released for November at 2:45pm. Any deviation from the expected levels could cause the possibility for significant volatility in US Dollar rates.

A raft of important economic data for the US will be released ahead of the FEDs interest rate decision, which could add significant volatility for the US Dollar. With this in mind, clients with a US Dollar buying or selling requirement may benefit from getting in touch with their currency specialist, as Wednesdays decision could cause further shifts for GBP/USD. Call us today on 01494 725 353 or email me here if you require assistance in signing up for your free account.


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Exchange rates on this page are interbank rates and indicate where the market is trading to show the performance of a currency pair. They are not indicative of the rates which we offer. The information on this web site is provided free of charge for information purposes only. It does not constitute advice to any person on any matter. Foreign Currency Direct plc. ("FCD") makes every reasonable effort to ensure that this information is accurate and complete but assumes no responsibility for and gives no warranty with regard to the same.