News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • 🇦🇺 Investment Lending for Homes (JUN) Actual: 0.7% Previous: 13.3% https://www.dailyfx.com/economic-calendar#2021-08-03
  • 🇦🇺 Home Loans MoM (JUN) Actual: -2.5% Previous: 1.9% https://www.dailyfx.com/economic-calendar#2021-08-03
  • 🇦🇺 Building Permits MoM Prel (JUN) Actual: -6.7% Expected: -4.5% Previous: -7.1% https://www.dailyfx.com/economic-calendar#2021-08-03
  • Heads Up:🇦🇺 Building Permits MoM Prel (JUN) due at 01:30 GMT (15min) Expected: -4.5% Previous: -7.1% https://www.dailyfx.com/economic-calendar#2021-08-03
  • Heads Up:🇦🇺 Home Loans MoM (JUN) due at 01:30 GMT (15min) Previous: 1.9% https://www.dailyfx.com/economic-calendar#2021-08-03
  • Heads Up:🇦🇺 Investment Lending for Homes (JUN) due at 01:30 GMT (15min) Previous: 13.3% https://www.dailyfx.com/economic-calendar#2021-08-03
  • Dow Jones Retreats amid Growth Concerns, Hang Seng May Pull Back https://www.dailyfx.com/forex/market_alert/2021/08/03/Dow-Jones-Retreats-amid-Growth-Concerns-Hang-Seng-May-Pull-Back.html https://t.co/FpOoRXxKEj
  • Join @FxWestwater at 22:00 EST/2:00 GMT for a webinar where you can prepare to trade commodities markets in the week ahead. Register here: https://t.co/qTOa61aMmN https://t.co/jr5ZSpdPqq
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/mhs6oAAl80
  • 7 out of 9 Dow Jones sectors ended lower, with 76.7% of the index’s constituents closing in the red. Materials (-1.51%), information technology (-0.65%) and industrials (-0.52%) were among the worst performer, whereas financials (+0.17%) a registered small gain. https://t.co/IBTj7PlGqO
US Dollar May Fall Further on Timid FOMC Meeting Minutes

US Dollar May Fall Further on Timid FOMC Meeting Minutes

Ilya Spivak, Head Strategist, APAC
US Dollar May Fall Further on Timid FOMC Meeting Minutes

Fundamental Forecast for the US Dollar: Bearish

  • US Dollar tumbles after January’s inflation report underwhelms
  • Reach for yield set to keep capital pouring into USD alternatives
  • FOMC meeting minutes unlikely to revive greenback’s fortunes

See our free guide to learn how you can use economic news in your FX trading strategy!

The US Dollar crumbled anew last week, suffering deep losses against all of its major counterparts. What started as a corrective pullback following the prior week’s forceful rebound turned into rout after January’s CPI data crossed the wires.

The inflation rate topped forecasts – sparking a brief burst of panic across financial markets – but ultimately underwhelmed. It registered unchanged from the prior month at 2.1 percent on-year, a limp result in the eyes of markets primed for fireworks after wage growth unexpectedly surged to a nine-year high.

That jump in wages stoked fears of a far more aggressive Fed rate hike cycle than markets had accounted for, sinking stock markets and putting the greenback on the offensive. When the headline price growth reading underwhelmed, those worries evaporated.

The narrative prevailing before February 2 is seemingly back at the forefront. That envisions a broadening global recovery forcing central banks to follow the Fed’s hawkish lead, narrowing the Dollar’s yield advantage and pushing capital flows toward now seemingly cheap alternatives.

Minutes from January’s FOMC meeting amount to the only significant bit of news-flow with potential to overturn trend next week. In the unlikely event that the committee sounds profoundly more hawkish, the US unit will find new vigor. More probably however, a cautious stance will lead to deeper losses.

--- Written by Ilya Spivak, Currency Strategist for DailyFX.com

To contact Ilya, use the comments section below or @IlyaSpivakon Twitter

To receive Ilya's analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES