With alarm bells ringing all over, investors are back looking for safe assets, taking the U.S. dollar to a two-month peak. Also boosting the dollar was minutes from the Federal Reserve’s July meeting that some analysts viewed as slightly hawkish.
The minutes showed officials were divided over the need for more interest rate hikes. But it’s important to remember that July’s meeting came before a raft of U.S. data that underscored the resilient economy. Where that leaves us in terms of U.S. rates remains to be seen.
Traders still more or less expect the Fed to stand pat next month but have priced in a 36% chance of a hike in November, according to the CME FedWatch tool. Some analysts warn that the market is still under-pricing the chances of another hike.
And we end with some sports news (look away if you are a Matildas’ fan) as England reached their first Women’s World Cup final after beating Australia 3-1, bringing an end to the co-hosts’ fairytale run.
England will face Spain on Sunday, looking to add a world title to last year’s European Championship triumph. May be it’s coming home?
/cloudfront-us-east-2.images.arcpublishing.com/reuters/WCFEHS3L4ZI3FPBR2XF3C4VDLQ.jpg "Rattled by the China and Fed double whammy 40")
