020 7898 0500Producer prices increased by 0.4% last month which was faster than expected. The figure could point to increasing inflation in the US so it will be interesting to see what the figure comes in at when it is released later today.
However, the main point of focus will be the Federal Reserve’s interest rate decision. They are expected to increase them by 25 basis points to 1.5% which will be the third increase of 2017 – one less than they outlined at the start of the year. 90% of the market has priced in a rate hike so it is unlikely there will be any significant dollar strengthening. However, if a dovish tone in the subsequent press conference is taken, we might see some dollar weakness.
As this is Federal Reserve Chair Janet Yellen’s farewell meeting (she will be replaced by Jerome Powell next year), it is possible she will resist making any overt statements regarding future policy.
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