Today marks the one-year anniversary of the UK vote to leave the European Union. With ‘Leave’ winning over 17 million votes and ‘Remain’ over 16 million, both cohorts won more ballots than any political party to have run in any general election in the UK’s history.
The week in review
The dollar held steady through the first part of the week as some Fed members imbued us with resurgent hopes of more aggressive policy. Several Fed members made remarks indicating the possibility of another rate rise this year.
Their efforts were not enough to convince investors. Market implied probability of another hike is not priced in until 2018. As the hype dwindled, the dollar gave up most of its gains from the start of the week. Taking a turn to the downside on Wednesday, the USD looks likely to close the week lower. If the Fed intends to take action before the end of the year, they will have to deliver some more heavy-hitters to drive their message home.
Have a great weekend!