Chicago Fed Evans’ Forward Guidance And GLD
Summary
- Chicago Fed President Evans is willing to risk higher inflation in the future with current low inflation environment, and his conditions for liftoff are noted.
- Evans suggested that the FOMC is considering 2 rate hikes, each in 2015 and 2016 at 25 basis points each, and this is an important forward guidance.
- This unofficial forward guidance is bullish on the USD and bearish on GLD.
- Despite Evans’ dovish speech, GLD is not affected and continues its downtrend, and is being pulled down further by the strong labor market report.
By FX Analyst
The impressive 06 March, 2015, labor report saw 295,000