Currency Sentiment - Bullish
The Federal Reserve is scheduled to hike interest rates twice more in 2018. The first hike is penciled in for September 2018, with a second hike penciled in for December 2018. The US economy has performed extremely well in 2018 with GDP growth reached 4.1% in Q2 2018, the best economic growth seen since 2014.
With inflation at the FED's 2% target and unemployment at record lows of 3.9%, wage growth is expected to pick up fast in the US as the shortage of labour begins to force businesses to raise employment costs to compete for the remaining amount of skilled workers left in the economy. This will further drive up the public spending capacity which is already strong from the impact of Tumps TAX cuts in the US economy.
Higher take-home pay for US workers and Increased corporate profits are forecast to push up spending, GDP growth and force the FED to be more aggressive in their current hiking cycle.
For more details please visit the Central Bank Monitor page for details on the Federal Reserve and the US economy.