Currency Analyst since 2010

Fed will tighten sooner than later

According to the new forecast by Goldman Sachs, the Federal Reserve will raise interest rates not in the first three months of 2016 as the analysts thought before, but already in the third quarter of 2015. The specialists revised their expectations after US Non-Farm Payrolls increased in June more than expected (288K vs. the forecast of 217K).

Other banks may follow suit bringing forward their rate-hike expectations. Bank of Tokyo-Mitsubishi UFJ said last week he expected the first rate increase in March next year instead of June. JPMorgan Chase brought forward his forecast last week by one quarter to Q3, 2015. Such mood is helping US Treasury yields increase and, consequently, is positive for USD.

US 10-year Treasury yields




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