The post Markets raise odds for Federal Reserve rate hike after inflation report appeared on BitcoinEthereumNews.com.
The rate cut party that markets spent all of 2024 anticipating has officially been uninvited. Fresh inflation data has pushed traders to price in something that seemed unthinkable just months ago: the Federal Reserve might actually raise interest rates. US headline CPI climbed to 3.8% year-over-year in April, hitting a nearly three-year high. Paired with March’s PCE reading, the Fed’s preferred inflation gauge, showing headline inflation at 3.5% and core PCE at 3.2%, the picture becomes harder to ignore. The pivot from pivot Market predictions currently indicate a 44% chance of a Fed rate hike before July 2027. Perhaps more telling, traders see no cuts happening before that date either. Chicago Fed President Austan Goolsbee has acknowledged that rate hikes are now on the table as a policy option. That’s notable because Goolsbee has generally been considered one of the m
The post Euro: Growth downgrades and softer outlook – Societe Generale appeared on BitcoinEthereumNews.com.
Societe Generale economists highlights that Eurozone 2026 GDP forecasts have been cut more than United States (US) projections in percentage terms, reinforcing United States (US) outperformance. While the European Central Bank (ECB) appears set on at least one rate hike, he suggests global central banks may rein in tightening as growth slows, with the bank’s end-2026 EUR/USD forecast below Bloomberg consensus. Eurozone growth trimmed as US outperforms “Consensus 2026 Eurozone GDP growth forecasts have fallen from 1.2% to 0.8% in the Eurozone since the start of the conflict, and while the US revision, from 2.5% to 2.1% is the same size, US economic out-performance will feel greater at these growth rates.” “The ECB appears committed to at least one rate hike in response to higher inflation, but it won’t take much for central banks around the world to rein I their rate-hiking plans
The post Euro falls as hawkish Fed expectations boost the US Dollar, Treasury yields appeared on BitcoinEthereumNews.com.
The Euro (EUR) extends losses against the US Dollar (USD) on Friday, with EUR/USD slipping to near one-month lows as hawkish Federal Reserve (Fed) expectations boost the Greenback and US Treasury yields. At the time of writing, the pair is trading around 1.1626 and is poised to close the week in negative territory. Higher energy prices linked to supply disruptions in the Middle East continue to deteriorate the inflation outlook across major economies. In the United States, inflation accelerated sharply for a second consecutive month in April, while consumer spending remained resilient. The latest batch of US economic data strengthened expectations that the Fed could keep borrowing costs unchanged in the coming months as policymakers assess the broader impact of rising energy prices on inflation. However, traders are growing more confident that the Fed could raise in
The post Fed Expected To Hold Rates Steady Through 2026, TD Securities Says appeared on BitcoinEthereumNews.com.
Fed Expected To Hold Rates Steady Through 2026, TD Securities Says Skip to content
Home Forex News Fed Expected to Hold Rates Steady Through 2026, TD Securities Says
Source: https://bitcoinworld.co.in/fed-expected-hold-rates-2026-td-securities/
The post US Dollar: Hawkish Fed repricing drives breakout – ING appeared on BitcoinEthereumNews.com.
ING’s Francesco Pesole notes the US Dollar (USD) is gaining strong short-term momentum as hotter US data reinforce expectations for a Federal Reserve (Fed) hike. With US Dollar Index (DXY) breaking above late April highs and no progress on Gulf tensions, they see risks of further Dollar strength, contingent on incoming headlines from Beijing and developments in Oil and equities. DXY breaks higher on Fed repricing “The dollar seems to be gaining some serious short-term momentum. We had speculated yesterday that the Trump-Xi meeting could have yielded some positive headlines (perhaps also on Iran) that would have capped USD and lifted sentiment. It’s been too little so far, and a turn lower in equity futures today alongside another leg higher in oil prices is allowing the dollar to benefit from the latest hawkish data and the resulting repricing higher in Fed hike bets.” “Overall, there i
The post Why Bitcoin Price Could Reach $88,000 Despite Rising Odds Of Fed Rate Hikes appeared on BitcoinEthereumNews.com.
Bitcoin (BTC) price might reach $88,000 because it is currently 11.2% lower than the ETF Flow Impact Score (EFIS). But the move here is facing an obstacle of a potential increase in interest rates by the Federal Reserve. The odds of this happening are now at 49% despite Kevin Warsh taking over the helm of the Fed after Jerome Powell’s term ends today, May 15. Bitcoin traded at $80,069 at the time of writing with a 0.35% gain. Odds of Fed Rate Hikes Soar as Jerome Powell’s Tenure Ends Data from the CME FedWatch Tool shows that there is a 49% chance that the Fed will increase interest rates between October and December 2026. 26.7% expect the Fed to increase rates by 25 basis points in October, while 2.8% expect a 50% hike. As for December, 38% expect a 25% basis point hike while 9% expect a 50 basis point increase. These increasing odds come even as Powell, who has be
The post Canadian Dollar hits fresh monthly lows as the US Dollar rallies in risk-off markets appeared on BitcoinEthereumNews.com.
The Canadian Dollar (CAD) extends losses against the US Dollar (USD) for the fourth consecutive day on Friday, with the USD/CAD pair trading in the mid-range of the 1.3700s after rallying about 0.5% so far this week. A combination of risk-off markets and higher US Treasury yields amid growing expectations of Federal Reserve (Fed) rate hikes is providing ideal conditions for Greenback buyers. The summit between US President Donald Trump and Chinese President Xi Jinping has delivered more compliments than concrete agreements, but given the controversial issues of Iran and Taiwan looming over the meeting, a friendly outcome has been considered enough to provide a further boost to the US Dollar. The Greenback has been drawing support from US macroeconomic data this week, as the strong US inflationary numbers, coupled with resilient Retail Sales figures, have pr
Rising rate hike odds could disrupt investment strategies, impacting high-growth sectors and crypto, necessitating strategic repositioning.
The post Markets raise odds for Federal Reserve rate hike after inflation report appeared first on Crypto Briefing.
