The below report consists of a market overview and insight into the equities, futures and derivatives markets, and FX speculative and deliverable markets.
HEADLINES
* Fed clearly open to rate cuts and markets react accordingly
– Equities higher, Dollar and Rates lower
* Reference to be being “patient” on rates was removed
– Replaced with increased uncertainty about the outlook and muted inflation
– Will closely monitor implications and economic outlook, “will act as appropriate”
– 7/17 Fed members expect 2 cuts this year….100bps priced by 2020
– What a turnaround six months ago Fed…
