ING: Fed Rate Hike Expectations Offset the Support for the Euro from Falling Oil Prices

Analyst Chris Turner from ING stated that the market is preparing for the Federal Reserve's rate hike on Wednesday, and the euro failed to find support from the pullback in oil prices. Chris Turner believes that the case for a rate hike is based on acting early to enhance the Fed's anti-inflation credibility and reduce the need for further tightening. The Fed's lack of communication fuels speculation. Data from the London Stock Exchange Group shows that the market is pricing the probability of a rate hike on Wednesday at 34%.