Asia Currency Rally Defies Probability of Fed Rate Hike: Charts
Source: BFW (Bloomberg First Word)
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(Bloomberg) -- The dollar is falling against a basket of Asian currencies even as futures markets see a higher probability of a December U.S. rate hike, suggesting investors will not be fazed by a 25 bps increase, Bloomberg strategist Mark Cranfield writes.
Alert: HALISTER1- Click here for a chart showing performance of Bloomberg- JPMorgan Asia dollar index benchmarked against futures- market prediction
- ADXY now at 107.76, up from the 105.88 on June 27; over the same period probability of a Dec. rate increase has risen to 47% from 8%
- ADXY also advanced to this year’s high at 108.95 on April 19, from 104.80 on Feb. 29, while Dec. hike probability barely changed between 54% and 55% over the same period
- Related story: USD/SGD more likely to fall than rise on 1% moves this year: UOB
- NOTE: Mark Cranfield is an FX strategist who writes for Bloomberg. The observations he makes are his own.
Source: BFW (Bloomberg First Word)
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UUID: 7947283