Earlier rate hike by the Fed? – Danske Bank

FXStreet (Edinburgh) - In the opinion of Jens Pedersen, Analyst at Danske Bank, the Fed might initiate its rate hike cycle sooner than anticipated.

Key Quotes

“We expect the Fed to hike rates in mid-2015 in line with the Fed’s own projection”.

“However, we believe the risk is skewed towards earlier tightening and as the market currently prices in the first hike in autumn 2015 and prices in only a very gradual increase thereafter, we expect a re-pricing of the Fed fund curve to take place over coming quarters”.