FOMC Minutes Keeping Dollar Bid - FXStreet
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.
"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."