After the June 2024 meeting of the Federal Open Market Committee (FOMC), the Fed is now signalling just one rate cut in 2024. In this video, Derek Halpenny, Head of Research, Global Markets EMEA and International Securities, disagrees the Fed's planned rate cut, citing mixed signals from the labour market and inflation data as evidence that three rate cuts is feasible. Rate expectations for the end of 2025 have increased since the FOMC meeting, indicating the importance of inflation data in shaping market expectations and impacting the strength of the dollar.
Derek also analyses how the political turmoil in France may affect the euro and highlights the potential currencies that could gain from this situation.