WEEKLY REVIEW: To raise or not to raise – the question to be answered by the Fed
11.09.2015, 16:18

WEEKLY REVIEW: To raise or not to raise – the question to be answered by the Fed

The Federal Reserve will release its interest rate decision next week. Market participants were cautious this week as the U.S. economic data was not able to clarify if the Fed starts raising its interest rate in September or not. The U.S. labour market continued to strengthen. The number of initial jobless claims in the week ending September 05 in the U.S. declined by 6,000 to 275,000 from 281,000 in the previous week, in line with expectations.

But the inflation in the U.S. remains weak. The U.S. producer price index was flat in August, beating expectations for a 0.1% decline, after a 0.2% rise in July.

On a yearly basis, the producer price index decreased 0.8% in August, beating forecasts of a 0.9% decline, after a 0.8% fall in July.

A stronger U.S. dollar and low oil prices still weigh on inflation.

The producer price index excluding food and energy climbed 0.3% in August, exceeding expectations for a 0.1% gain, after a 0.3% increase in July.

On a yearly basis, the producer price index excluding food and energy climbed 0.9% in August, beating forecasts of a 0.7% increase, after a 0.6% rise in July.

The consumer sentiment in the U.S. seems to weaken this month. The Thomson Reuters/University of Michigan preliminary consumer sentiment index slid to 85.7 in September from a final reading of 91.9 in August, missing expectations for a decrease to 91.2. It was the lowest level since September 2014.

China will release its economic data on Sunday. The weak data from China could force the Fed to delay its interest rate hike.

Greece should turn again in focus as the snap election is approaching. The election will be held on September 20. It will need time to form a government. The implementation of the bailout obligations is likely to suffer.

It is likely that the currency pair EURUSD will test the level at $1.1400, maybe even the level of $1.1500, if the Fed will not raise its interest rates.

If the Fed raises its interest rate, the currency pair EURUSD may test the level of $1.1100 or $1.1000.

  • Name: Konstantin Meinhardt
Symbol Bid Ask Time

© 2000-2023. All rights reserved.

This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).

The information on this website is for informational purposes only and does not constitute any investment advice.

The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.

AML Website Summary

Risk Disclosure

Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.

Privacy Policy

Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.

Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.

Live Chat E-mail
Choose your language / location