No, Fed is not ready to hike – TDS

By FXStreet FXStreet (Guatemala) – Analysts at TD Securities explained that the Fed will hike when the US is good and ready, not when China has properly prepared.

Key Quotes:

“And US growth actually looks fairly decent and well supported at the moment. But in May, we suggested a framework for analyzing the market’s pricing of various key trading themes. Updating key dynamics since then shows that while market sentiment had been improving into the summer, the nascent signs of the market putting on reflationary trades and global growth acceleration trades came off well before China fears took off in August.

In fact, the bottom chart shows that while economist consensus forecasts for year-ahead inflation have continued to trend higher, the market is fading this. Meanwhile, markets are completely fading muddling but stable PMIs and suggesting growth momentum is much weaker.

In fact, this global growth momentum indicator backed out of key rates, equities, and commodities markets shows a clear trend with Fed policy. We have to ask ourselves, after nine years of building up to sounding the all clear, is the Fed really ready for the first time to hike into a global slowdown? We say no.”
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Source:: FX Street