The weak labor market statistics for August from the USA on Friday – which confirms a weak trend also in July – has made the market increasingly set on the fact that the Fed will lower the interest rate at the next interest meeting on September 17.
In the pricing on the market, it is now fully priced in that there will be a reduction of 0.25 percentage points. And there is even a certain probability in the pricing – although small – that it will be a so-called double reduction of 0.50 percentage points.
The downward pressure is clear also on American government bonds. It also has effects on the currency market, where the dollar has fallen to 9.38 kronor – the lowest rate against the krona in over three years. It can be compared to dollar rates over 11 kronor before Donald Trump took office as president in January.
