Chicago Federal Reserve
Bank President Charles Evans said he "could be fine" with the Fed raising rates in December, but he wanted to see how the economy and inflation
progressed before deciding. Indeed, he cautioned that it might be better to wait for inflation
to rise closer to the Fed's 2% target before moving. Evans has repeatedly expressed concern on the U.S. central bank's preferred measure of inflation
moving back to its target rate. It currently stands at 1.7%. Evans in his speech said any rise in inflation
above the current target would be minimal in the current environment so "if it became necessary, policy wouldn't have to do much work to lower inflation
expectations back down to 2%."
The Chicago Fed president does not have a vote this year on Fed policy but will become a voting member in 2017. Still, currently he does participate fully in deliberations.
Traders currently predict a roughly 70% probability that the U.S. central bank
will raise rates at its December meeting. Investors are looking to Wednesday's release of minutes of the latest Federal Reserve
Open Market Committee meeting and Janet Yellen’s speech on Friday to see how close the Fed was to hiking rates last month.
The dollar hit an 11-week high against a basket of major currencies on Tuesday . We have raised our USD/CHF
bid to 0.9770, near 14-day exponential moving average
Source: GrowthAces.com - Daily Forex Signals