Potential December rate hike?

[TomB]

Hi all

 

With the market looking for the Fed to hike rates in December,  has put together this video to discuss the key questions traders should be asking and the best trades to look at.

 

Do you think a rate hike is coming? Let us know your thoughts with a post below.

 

Tom

 

[FoxTrader]

hi  - the possibility certainly increased substantially over the past week. I am going to stick to my original "no", the majority FED role players seem dovish and I think they will probably start the year with something like that opposed to end it with a rate hike? Personal opinion - they are creating a hype - and it works, everybody uses the term "FED rate hike" more

 

Happy days

[FiringSquad13]

 I think fundamentally the markets are ready for a rate rise.  If you look at the dollar basket you can see just how strong the dollar is.  I think the markets have already priced in a rate rise and in my opinion the fed just need to get on with it.  I think most central banks (certainly the BofE) are waiting on the fed to move before they do.

 

When you look at the dollar basket, is it any wonder that commodities have been hit with such a strong currency.  Usually you would expect the currency to get stronger after a rate rise but I think it will just slightly ease the pressure and we could see a bit of a rebalancing when other central banks follow the fed.

 

Still a long way to go but a rise in December is still on the cards.  Although anything could happen ........