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
Subscribe
Please try again
EUR/USD
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
Oil - US Crude
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
Wall Street
Mixed
Gold
Bearish
GBP/USD
Bullish
USD/JPY
Bearish
More View more
Real Time News
  • Commodities Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Gold: 0.82% Silver: 0.65% Oil - US Crude: -0.05% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/KVfIXfvjtM
  • Gold breaks out of the range-bound price action from earlier this week as the 10-Year US Treasury yield slips to a fresh monthly low (1.53%). Get your $XAUUSD market update from @DavidJSong here:https://t.co/QlflNxQb8o https://t.co/cMYBlVaH5X
  • Bank of America sets bond sale at $15 billion, new record issuance for a bank - BBG $BAC
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.51%, while traders in Germany 30 are at opposite extremes with 80.34%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/Rt3UaXS0iz
  • CI Global Asset Mgmt to launch world's first Ethereum ETF - BBG $ETH
  • Indices Update: As of 18:00, these are your best and worst performers based on the London trading schedule: Wall Street: 0.28% US 500: 0.16% France 40: 0.08% FTSE 100: 0.08% Germany 30: 0.03% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/GMkjgMV7IS
  • US Indices are mixed today. The S&P 500 and Dow are up while Tech and Small Caps are trading slightly in the red. DOW +0.28% SPX +0.17% NDX -0.12% RUT -0.13% $DIA $SPY $QQQ $IWM
  • The US 10yr Treasury yield has slightly risen from the one month low hit yesterday around 1.53% to currently trade around 1.57%. Yields remain depressed compared to their levels from late March/early April. $USD https://t.co/uJJHXPaOhm
  • Retail CFD traders (at IG) have built up their heaviest short and net short position on the $SPX since we hit the peak at the beginning of September: https://www.dailyfx.com/sentiment https://t.co/IGK0KKRwwB
  • Hey traders! Wrap up the week with a quick market update from @DailyFX Chief Strategist @JohnKicklighter 👇 https://t.co/qLtlinTzj8
US Dollar Slips as September FOMC Minutes Reveal Concern Over Inflation

US Dollar Slips as September FOMC Minutes Reveal Concern Over Inflation

Christopher Vecchio, CFA, Senior Strategist

Talking Points:

- While many Fed officials agreed that it was time for another rate hike in the coming months, many issued concern that low inflation wasn't a temporary phenomenon.

- At the September FOMC meeting, the Fed outlined plans for raising rates again in December, as well as three times next year.

- The DXY Index, already down on the day, slipped back towards its lows amid a four-day losing streak.

The US Dollar is back near the lows of the day during its four-day losing streak after the Federal Reserve’s September meeting policy minutes revealed deeper concerns about persistently low inflation.

While some officials believed that there were still upside risks to inflation as a result of the tight jobs market, there was a prevailing belief among many FOMC policymakers that recently low inflation was not simply transitory. Implicitly, if policymakers believe that inflation will stay lower for longer, than they will be less inclined to stay committed to their current prescribed glide path of interest rates (which, as seen since the start of the Fed’s hike cycle in December 2015, has been a persistent source of sabotage for greenback rallies).

As a reminder, at the September FOMC meeting, officials saw the median Fed funds rate at 1.4% at the end of 2017, as they did in December 2017, March 2017, and June 2017; and the median Fed funds rate at 2.1% at the end of 2018, as they did in December, March, and June.

In sum, today’s minutes can be seen as neither more hawkish nor more dovish than what markets were pricing in ahead of time, given the outlook for another hike this year; Fed funds were pricing in a 77% chance of a 25-bps rate hike in December after the minutes were released, just as they were beforehand.

See the DailyFX economic calendar for Wednesday, October 11, 2017

Chart 1: DXY Index 1-minute Chart (October 11, 2017 Intraday)

US Dollar Slips as September FOMC Minutes Reveal Concern Over Inflation

Immediately following the release, the US Dollar slipped back versus the Euro and the Japanese Yen, with the Dollar Index (DXY) falling from 91.62 ahead of the FOMC decision to as high as 92.52. DXY Index was trading at 92.50 at the time this report was written.

--- Written by Christopher Vecchio, CFA, Senior Currency Strategist

To contact Christopher Vecchio, e-mail cvecchio@dailyfx.com

Follow him on Twitter at @CVecchioFX

To be added to Christopher's e-mail distribution list, please fill out this form

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

DISCLOSURES