US rates set to rise faster than expectations – Danske

FXStreet (Barcelona) - According to Kasper Kirkegaard, Chief Analyst at Danske Bank, with prospects for a mid-year Fed rate hike increasing, US rates are set to rise faster than what’s being priced in the markets.

Key Quotes

“In the US, yields continue to move. While some of the move in yesterday’s session was probably driven by speculation Greece’s government may seek an extension of its loan agreement, the key driver for higher US rates is increased prospects of a Fed hike in mid 2015.”

“Yesterday, Plosser (non-voter) said that “I think we’re really close”, when asked about rate hikes (source: Bloomberg).”

“Today, the minutes of the Fed’s last meeting on 27- 28 January will be released. We continue to forecast that US rates will rise faster compared to what the markets are pricing in.”

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