After the June 2024 meeting of the Federal Open Market Committee (FOMC), the Fed is now signalling just one rate cut in 2024. In this video, Derek Halpenny, Head of Research, Global Markets EMEA and International Securities, disagrees the Fed's planned rate cut, citing mixed signals from the labour market and inflation data as evidence that three rate cuts is feasible. Rate expectations for the end of 2025 have increased since the FOMC meeting, indicating the importance of inflation data in shaping market expectations and impacting the strength of the dollar.

Derek also analyses how the political turmoil in France may affect the euro and highlights the potential currencies that could gain from this situation.

Key points

• 00:25 - After last week's FOMC, the Fed is now signalling just one rate cut in 2024. Do you concur with the Fed's guidance?
• 01:44 - How big an impact do you think the increased political risk that have emerged in France will have on the euro?
• 4:10 - Is it just the US dollar that will be the beneficiary of the increased risks or may the other currences benefit also?

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