The consensus call will continue to be for the Fed to hike by 50 bps surely but the off chance is that they might go with a surprise 75 bps rate hike instead. The only worry for the Fed is the way the market will receive that kind of decision.
As things stand, we’re already seeing quite a terrible showing across all asset classes since Friday and another bolt of lightning isn’t going to help calm the nerves when the storm clouds are rampaging. A 75 bps rate hike will see significant repricing for subsequent Fed meetings and that will continue to stir plenty of anxiety in markets.
US dollar
This article was originally published by Forexlive.com. Read the original article here.