The U.S. dollar gained this morning on strong jobs data and stronger forecasts for the U.S. economy in the coming years. This morning, Fitch Ratings projected that U.S. economic growth would increase by 2.5% in 2015 and 2016 and by 2.3% in 2017. Today’s insight includes an averted government shutdown, a rise in global oil prices, and bad news in the Japanese economy.
After this morning’s economic data euro bulls are starting to feel a bit like Alexander. Every hour from 6:00 – 9:00 GMT brought another disappointing economic report for the Eurozone, prompting traders to increase bets that the ECB will have to expand its QE program:
Over the last 24 hours, Fed Chair Janet Yellen came out with a relatively hawkish outlook on monetary policy, stating that she still expects a rate hike “later this year,” that US economic prospects “generally appear solid,” and that the FOMC does not expect recent global financial developments to significantly affect policy.”
The U.S. dollar was gaining this morning on a stronger-than-expected GDP report, rising expectations of a Fed rate hike, and easing concerns about global growth. Second quarter GDP was up 3.9%, well ahead of consensus expectations of 3.7%.
Today’s insight includes a rate cut in Norway, more struggles for commodity currencies, a speech by Janet Yellen, and a meeting between the leaders of the world’s two largest economies. This is your Morning Market Report for Sept. 24, 2015.