The key event for today is the FOMC minutes. The markets have already priced in the rate hike before the year-end. Under these circumstances, the traders will be very interested in the central bank's stance over the coming months.
FYI, in the last meeting 12 of 16 FOMC’s members were ready for at least one more rate hike in 2017.
The Fed will probably discuss the risks for the financial stability, the inflation rate and the shrinkage of a balance sheet. What we have now is the lowest unemployment in 16 years but a subdued inflation.
Almost all the majors keep their ranges today. During these last days, USD lost some ground against EUR. The pair refreshed 2-week highs at 1.1850. To our surprise, actually. Well, probably the reason is Catalonia left the door open for negotiations yesterday, which made the life easier for euro. One never knows.
The area 1.1850-1.1900 is a good opportunity to start buying the buck. But be careful since only the close above this last mark will diminish the dollar’s bullish stance.
USD And Its Sword Of Damocles
The key event for today is the FOMC minutes. The markets have already priced in the rate hike before the year-end. Under these circumstances, the traders will be very interested in the central bank's stance over the coming months.
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