FOMC Minutes Keeping Dollar Bid - FXStreet

FOMC Minutes Keeping Dollar Bid - FXStreet

20 May 2016, 03:23
Roberto Jacobs
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FOMC Minutes Keeping Dollar Bid - FXStreet

Valeria Bednarik, chief analyst at FXStreet explained that the hawkish tone of the FOMC Minutes kept the dollar running this Thursday, as investors were caught on the wrong side of the market when the Central Bank opened doors for a June rate hike.

Key Quotes:

"The greenback strengthened sharply against most of its major rivals, but corrected lower in the US afternoon, as poor local data put an end to dollar's gains. Nevertheless, the EUR/USD pair barely managed to recover to current 1.1200 region after trading as low as 1.1179.

The ECB released the Minutes of its April meeting and showed that the bank wants to leave absolutely clear that it is committed to revive inflation in the Eurozone, nothing that can actually shock the markets. In the US, weekly unemployment claims in the week ending May 13th came in at 278K above expected, but below previous of 294K.

The Philadelphia manufacturing index fell in May, down to -1.8 from previous -1.6, also disappointing. Dudley and Lacker from the FED were on the wires, both somehow reaffirming that a rate hike next June is possible."


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