US Dollar Tumbles, Sees Significant Volatility on Leaked FOMC Minutes
- US Dollar rallies sharply as Bloomberg News headline shows early release of Fed minutes
- Full release shows headline was misleading, forces material US Dollar pullback
- Follow real-time news update via the Forex Real Time News page
The US Dollar saw significant volatility as the highly-anticipated minutes from the July US Federal Reserve meeting were leaked. Dovish rhetoric pushed the Greenback lower across the board.
All eyes were on the FOMC Meeting Minutes due at 14:00 ET/18:00 GMT, but the US Dollar suddenly rallied sharply as a Bloomberg News headline at 13:36 ET said “MOST FED OFFICIALS IN JULY SAW CONDITIONS FOR A RATE RISE NEARING.” Information came through in bits and pieces, and it remains unclear which news organization or individual prematurely released the official Fed document.
Ultimately the US Dollar rally faded as the full FOMC Minutes showed that the hawkish headline was almost certainly misleading. The full document showed that officials retain a wait and see approach towards raising interest rates, and indeed the implied odds of a Fed rate hike in September fell considerably.
US Dollar Surges on Initial Bloomberg News Leak, Pulls Back Sharply on Full FOMC Minutes Release
Source: DailyFX Powered by TradingView, Prepared by David Rodriguez
The dovish shift in Fed rhetoric bodes poorly for the US Dollar, and we may see it continue to trade to fresh lows against the Euro and other major counterparts through near-term trading.
Written by David Rodriguez, Senior Strategist
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.