US Dollar May Find a Lifeline in December FOMC Minutes
- German jobs, Swiss and UK PMIs unlikely to generate FX fireworks
- US Dollar might find a lifeline in December FOMC meetingminutes
- Aussie, NZ Dollars fall as Pound gains amid corrective price action
A relatively lackluster offering on scheduled European event risk doesn’t seem likely to generate fireworks. German unemployment statistics as well as manufacturing and construction PMI surveys out of Switzerland and the UK (respectively) are on tap. The outcomes will probably mean little for near-term ECB, BOE and SNB policy trends and so ought to pass with quietly.
Minutes from December’s FOMC meeting then enter the spotlight. The announcement sent the US Dollar tumbling even as officials called for three rate hikes in 2018 – topping priced-in bets – while lifting growth and employment forecasts. If the publication echoes confidence in underlying economic strength channeled by Fed Chair Yellen at the presser following the sit-down, the greenback may at last find a lifeline.
The Australian and New Zealand Dollars faced selling pressure while the British Pound traded broadly higher in otherwise quiet Asia Pacific trade. An empty economic calendar and the absence of other singularly identifiable catalysts suggests all three moves are corrective. The Aussie and Kiwi hit two-month highs while Sterling touched to a one-month low on the eve of the calendar turn to 2018.
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** All times listed in GMT. See the full DailyFX economic calendar here.
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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