Sunday, 25 August 2019 04:50 GMT
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USD Bulls Eye Return to 2019 Highs on FOMC Minutes




(MENAFN - DailyFX) USDPrice Analysis and Talking Points:

USD Bulls Look to Return to YTD Highs Fed Minutes to Reiterate Patience, Eyes on Inflation Views See ourquarterly USD forecastto learn what will drive prices throughout Q1!

USD EyesFOMCMinutes

Today's focus will be on the FOMC minutes from the April monetary policy meeting. As a reminder, the FOMC had cut the IOER by 5bps as expected, while Fed Chair Powell noted that soft inflation had been due to 'transitory' factors. Potentially, this was used as a way to cool expectations of a near-term interest rate cut from the Fed. As such, focus will be on the committees view regarding inflation, alongside the trade war tensions. In reaction Chair Powell's statement on inflation, the USD had edged higher, alongside US bond yields. As such, given how dovish rates markets are priced in for the Fed, risks are for a similar reaction as the Fed look to signal that there is little arguments for a rate cut, which in turn could see a similar reaction with the greenback edging towards YTD highs (97.84).

USD Bulls Eye Return to 2019 Highs on FOMC Minutes Source: Refinitiv, DailyFX (Fed Rate Expectations)

US DollarIndex Price Chart: Daily Time Frame (Dec 18 – May 19)

USD Bulls Eye Return to 2019 Highs on FOMC MinutesFX TRADING RESOURCES:

See ourquarterly USD forecastto learn what will drive prices through mid-year! Just getting started? See our beginners'guide for FX traders Having trouble with your strategy?Here's the #1 mistake that traders make --- Written by Justin McQueen, Market Analyst

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USD Bulls Eye Return to 2019 Highs on FOMC Minutes

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