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.

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
EUR/USD
Bearish
Oil - US Crude
Mixed
Wall Street
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
GBP/USD
Bearish
USD/JPY
Bearish
More View more
Real Time News
  • There is a great debate about which type of analysis is better for a trader. Is it better to be a fundamental trader or a technical trader? Find out here:https://t.co/7kPzAoNoLG https://t.co/UncdNbcmXm
  • Pfizer and AstraZeneca vaccines are reportedly under accelerated UK reviews
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 97.27%, while traders in NZD/USD are at opposite extremes with 67.19%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/BqQRr6AbEp
  • Technical indicators are chart analysis tools that can help traders better understand and act on price movement. Learn more about the importance of technical analysis here: https://t.co/NpC1D8y4Aa https://t.co/7DvvoE4tpz
  • Commodities Update: As of 10:00, these are your best and worst performers based on the London trading schedule: Silver: 0.41% Gold: 0.22% Oil - US Crude: 0.17% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/NgqT0tF7BZ
  • Forex Update: As of 10:00, these are your best and worst performers based on the London trading schedule: 🇬🇧GBP: 0.14% 🇯🇵JPY: 0.13% 🇦🇺AUD: 0.10% 🇳🇿NZD: 0.02% 🇪🇺EUR: -0.06% 🇨🇭CHF: -0.13% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/BthsDnzheC
  • 🇮🇹 Inflation Rate YoY Prel (OCT) Actual: -0.3% Expected: -0.4% Previous: -0.5% https://www.dailyfx.com/economic-calendar#2020-10-30
  • 💶 Inflation Rate YoY Flash (OCT) Actual: -0.3% Expected: -0.3% Previous: -0.3% https://www.dailyfx.com/economic-calendar#2020-10-30
  • 💶 Unemployment Rate (SEP) Actual: 8.3% Expected: 8.3% Previous: 8.3% https://www.dailyfx.com/economic-calendar#2020-10-30
  • 💶 Core Inflation Rate YoY Flash (OCT) Actual: 0.2% Expected: 0.2% Previous: 0.2% https://www.dailyfx.com/economic-calendar#2020-10-30
US Dollar May Fall Further on Timid FOMC Meeting Minutes

US Dollar May Fall Further on Timid FOMC Meeting Minutes

2018-02-17 02:45:00
Ilya Spivak, Head Strategist, APAC
Share:
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