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Koefoed: Dovish FOMC, China and Greece shift US rate hike expectations

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The market was expecting the US Federal Reserve to hike rates in December. But now traders believe the Fed won't move on rates before March 2016. And the shift in expectations is due to a very dovish tone from the FOMC as well as volatility stemming from Greece and China, says Saxo Bank’s Mads Koefoed.

He believes that the market is too bearish on the US economy, which he expects to have seen a rebound in the second quarter and to show solid growth in the second half of this year. For that reason, Koefoed also believes that the market may revert to a December rate hike.

Koefoed also looks at how all of this may impact EURUSD, which could take some market players by surprise.