The dollar continues to gain steam, but if it reaches parity with the euro, a December rate hike from the Federal Reserve could be off the table, according to one analyst. Craig Erlam, a senior market analyst at Oanda, based in London, said the euro and dollar’s closeness to parity is another challenge for the Fed. ‘The dollar hitting parity with the euro could possibly prevent the Fed from raising in December,’ he said. ‘Though I expect parity to be reached later in December.’ The Fed’s two-day policy meeting wraps up on December 16. The euro fell to $1.069 against the dollar, awfully close to parity. ‘The U.S. economy is recovering strongly, the unemployment rate is at 5 percent – the Fed has to look at raising interest rates and can’t just focus on the strength of the dollar,’ he said. TheStreet’s Scott Gamm speaks with Erlam.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
