Analyst: The market expects the Fed to cut interest rates, and soaring oil prices may exacerbate inflation
According to Golden Ten, analyst Srinivasan Sivabalan said that a few weeks ago, money markets predicted that the Federal Reserve would cut interest rates three times this year, but have now reduced those bets. Those expectations are likely to take a further hit when markets open on Monday, as the main concern is that surging oil prices will fuel inflation. If recent days are any indication, risk aversion could boost the dollar and weigh on the Israeli shekel and emerging market currencies. Investors may further flock to U.S. Treasuries for safety.
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