• TRM (USD/COP)COP 3,235.59 +1.65% +COP 52.60Colombia's official exchange rate (Financial Superintendence), valid Nov 4 to Nov 4
  • EuroCOP 3,617.08 +1.72% +COP 61.02Reference: TRM crossed with the European Central Bank rate of Nov 3; not the market quote
  • Mexican pesoCOP 173.98 +3.35% +COP 5.64Reference: TRM crossed with the European Central Bank rate of Nov 3; not the market quote

Fed decides rates with a pause priced in: the three scenarios markets are watching for stocks, the dollar and gold

FinanceInternationalXTB.com40 s readAI summary
Image: XTB.com

The Federal Reserve meets on October 27-28 with inflation still high and employment losing strength. Futures assign an 89.5% probability of holding rates at 3.75%-4.00% and a 10.5% chance of a 25-basis-point hike. For December, 73.1% points to a 4.00%-4.25% range. The analysis lays out three scenarios: a pause with a restrictive message, a pause with a more cautious tone on December, and a surprise hike, each with a different impact on the Nasdaq 100, the dollar index and gold.

In 40 seconds

  • Futures give an 89.5% probability of a pause and only 10.5% to a 25-basis-point hike this week.
  • For December 9, 73.1% of probabilities are concentrated in the 4.00%-4.25% range.
  • The central scenario is a pause with a restrictive message, without ruling out a December hike.
Read the full story at XTB.com

IASummary generated by artificial intelligence from a story by XTB.com. It may contain errors: the original source prevails.

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