Tomorrow’s interest rate decision in the US is becoming a widely anticipated hot bed of activity, expected to cause market volatility. During 2017 there was forecasted to be 3 interest rates by the Federal Reserve and so far we have only seen two. There have been some concerns with economic data over the last few months, as inflation in the US has remained below expected levels.
Tomorrow it could become clear as to the chances of the final forecasted rate hike. Whilst there isn’t going to be a hike tomorrow Chairlady of the US Federal Reserve, Janet Yellen may be able to confirm the chances of the final hike coming this year. Should there be an indication of a hike then I would expect to see the US Dollar make gains across the board. In my opinion the GBP/USD exchange rate could drop into the 1.33’s, which would be 2 cent off the high of the start of the week.
Donald Trump Delivers North Korea Warning
President Trump speaking in front of the United Nations in New York delivered his maiden speech and took the opportunity to threaten North Korea. Trump suggested that the “Rocket man” in North Korea was on a path to suicide and finished it off by suggesting the US will destroy the dictator’s country if it needs to.
Donald Trump and Kim Jong-Un have been indirectly going backwards and forwards over the past few months. President Trump couldn’t resist the opportunity, in front of world leaders to state his dominance in the situation. He also took the chance to scorn the political governance of Iran, suggesting they’re trying to destabilise the Middle East. Whilst the speech earlier today didn’t have much of an effect on currency markets, if there was an escalation between the US and North Korea there would definitely be volatility.