Market Update – 15th June 2016 – Markets Hot Up For U.S Interest Rate Decision Tonight

Flat U.S retail sales figures which came in at just 0.4% have added further doubt to any hike in interest rates from the U.S Federal Reserve early tomorrow morning. There was already increasing doubt that we’d see another rate hike given recent comments from Fed Chair Janet Yellen, and this latest data seems to have confirmed what many pundits were already thinking; that is, the December rate hike was a one-off and we may be waiting a while for the next one.

Equity markets and commodities also fell overnight as risk aversion again took centre stage. European equities were the worst performers down an average 2% or so, while commodities markets also got hammered.

As mentioned a bit earlier tonight the U.S Fed meet to determine if there is to be any move in interest rates from 0.5% and we’ll also see a bit of data out of the U.K in employment figures.

DATA RELEASES TODAY:

GBP – Employment Data at 6.30pm

USD – FOMC Meeting & Federal Funds Rate at 4.00pm

AUD EXCHANGE RATES:

AUD/USD – 0.7349

AUD/GBP – 0.5208

AUD/EUR – 0.6556

AUD/NZD – 1.0519

AUD/JPY – 77.926

***Above rates are indiciative wholesale rates and intended as a quide only***

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Patrick Downes

Senior Corporate FX Dealer

 Compass Markets

Contact Patrick for a quote on 0431 278 632

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