Currency Note US Dollar

Crunch time for US interest rates?

By Ricky Bean December 16th, 2015

Yesterday was a positive day for the US dollar as the key consumer inflation data came out as expected. This added to US dollar strength we saw earlier in the day as investors anticipate the US Federal Reserve interest rate decision this evening.

Industrial production and flash Manufacturing Purchasing Managers’ Indices are expected to post stable figures, but the key event today will be the Federal Reserve post meeting announcement later in the evening where it is expected that the central bank will raise interest rates. If they do, we can expect further US dollar strength, and if not, we could see the dollar weaken. The meeting minutes that follow will be very key, as they could give an indication to how gradual a rate rise could be throughout 2016.