Market Roundup – Rate differential at play – Tip TV

The opening segment of today’s London open show has Mike Ingram, Strategist at BGC Partners and Tip TV’s Zak Mir detail the interest rate differential play witnessed in the FX markets ahead of the Fed minutes release as markets price-in a December rate hike.

Ingram says the drop in the Euro-dollar play represents the divergence play given the Fed December rate hike bets stand at 67%. Partly it also represents heightened expectations that ECB may do more easing, which is evident from the rie in the Eurozone bond yields.

Panel also sheds light on the overnight recovery in Pound on speculation that Britain may be able to avoid ‘Hard Brexit’. Meanwhile, Ingram refers to Yuan devaluation as a ongoing story and a part of the economic re-balancing.

Watch the opening segment to know if the recovery in Pound is a technical correction or has more substance to it and whether Fed rate hike in December would rattle markets.