Cleveland Federal Reserve President Loretta Mester, who is considered one of the more Hawkish Fed officials has suggested a rate hike is coming. Mester said the US Economy was on “sound footing” and that the trend for inflation is positive with it moving in the right direction.
Mester had previously been known for her dissent against the slow rates of previous hikes and looks set on raising the rate as the economy progresses.
Trump makes up attack in Sweden
Donald Trump was left with a few questions to answer after suggesting there was an attack in Sweden over the weekend. Speaking on Sunday Trump suggested there was something happening last night which left many, none more so than the Swedish baffled.
What actually might have happened is Trump watched a documentary on Fox news that talked about the current crime wave in Sweden. Trumps 100% real live Twitter feed has seemed to cause more confusion than help over the past few weeks and can have a major effect on how news is shared. For as long as Trump keeps sharing stories online then there can always be a risk of major controversy and disruption spreading fast.
Busy Week of US Data
This week there is multiple data releases for the US Dollar which could have a significant effect on the GBP/USD rate. If there is a flurry of good and positive data once again this week I wouldn’t be surprised to see further USD Strength. Personally, I can see the cable rate moving towards the 1.20 mark over the next few weeks especially with the Brexit uncertainty at the moment. There is certainly an air of optimism about upcoming rate hikes from the Fed and this is driving USD strength, something the looks set to continue.