A number of hawkish comments were heard yesterday from individual members of the Federal Reserve. But what matters is the data, in the opinion of economists at Commerzbank.
Just words are not enough
“After the latest inflation data, the market continues to be rather unimpressed by the hawkish statements. It would probably be more convincing if the upcoming economic data indicated that price pressures in the US are still very high. However, it remains to be seen whether the labor market data can convince the market this week. We expect a further slowdown in job creation.”
“There will probably be more hawkish statements from the Fed in the near future, but as long as the market does not get more solid arguments, especially that the key interest rate in the US will not be cut again next year, the USD is still unlikely to benefit.”
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