“Mr Moffitt said: “[Inflation measures] are off a low base and if the oil price goes from $US50 [a barrell] to $US70, it will give you a high headline nominal inflation number.
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The Fed has kept the rates at or near zero since the 2008 financial crisis in an effort to stimulate the economy. (NASDAQ:INFI) will provide an update on the clinical development program and commercial overview for duvelisib, an oral, dual inhibitor of phosphoinositide-3-kinase (PI3K)-delta and PI3K-gamma, and discuss the company’s immuno-oncology development candidate, IPI-549, at its Research and Development (R&D) Day this morning from 8:00am (ET) to 11:45am (ET) in New York City. The next FOMC meeting is on December 15-16, and futures contracts now imply a roughly 56% probability of a December rate hike, up from 34% prior to the Fed statement.
“We think the Fed does raise interest rates in December, but it is going to be somewhat of a close call and it depends on how the data comes in between now and then”, said David Lefkowitz, senior equity strategist for UBS wealth management. Yellen has been waiting for the United States economy to regain its footing before raising the prime interest rate, and has also discussed soft unemployment numbers as a key factor.
KEEPING SCORE: Britain’s FTSE 100 fell 0.4 percent to 6,386.65 and Germany’s DAX dipped 0.1 percent to 10,831.16.
A robust U.S.jobs report on Friday could trigger another sell-off in gold, which is already facing weak technicals and investor outflows.
Yellen said that if the economy advances as the Fed expects over the next six weeks, a rate increase next month will be a live possibility.
The increasing likelihood of a December rate rise has prompted a downturn for gold. Fed Up, a coalition of community groups organized by the Center for Popular Democracy in Washington, was also present – but urging for rates to stay low.
A report out from payroll processor ADP showed that American businesses added a solid but unspectacular 182,000 jobs in October.
After the recent foreign fund inflows, foreign investors began moving their money out of Taiwan on Thursday, which gave a strong hint to currency traders to cut their holdings in the Taiwan dollar in exchange for the US dollar, dealers said.
Qualcomm fell 5.3 percent to $57.05 after giving a lower-than-expected profit forecast for the first quarter. Yields rise as prices fall.
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“Today may see the BoE sharpen up its hawkishness too with a potential 7-2 vote and the Inflation Report and related minutes underlining the need to normalise interest rates over the course of next year”, Morgan Stanley said in a note, adding these factors could send the currency higher.
