US Fed's Fischer says they're watching markets closely and preparing for July FOMC meeting

1 July 2016, 16:28
Sherif Hasan

US Federal Reserve's vice chairman Fischer out on the wires 1 July 2016

  • will have better idea of conditions by July FOMC meeting
  • we make our decisions one meeting at a time
  • we've got to look over a longer horizon than a few months
  • most of the data since May payrolls looking good
  • hard to predict USD but Fed takes it into account
  • Fed's primary goal is to do right for US economy
  • expects US economy to continue on slow very gradual path we've been on
  • Brexit probably less important for US than others
  • Fed has no plans to move into negative territory
  • will try to avoid ever getting to negative rates

Try to avoid? Hardly reassuring. What price US rate cut this month? Can definitely rule hikes out for a while still anyhow despite his view on data "looking good".

  • much less uncertainty, concern, on Chinese yuan rate
  • China more organized on FX policy

He's having a laugh right ?

USD still finding a few buyers with GBPUSD testing 1.3300, again. Keep selling those GBP rallies.

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