FOMC Minutes Failed to Stimulate the USD, So What?
The USD failed to rise after the FOMC minutesAussie dollar sustains strengtheningFocus on US jobs ADP dataThe dollar struggled to continue strengthening on Thursday even as the Federal Reserve (Fed) reiterated its commitment to fight inflation.Minutes of the Fed's policy meeting released early this morning showed that policymakers agreed to slow aggressive rate hikes.However, the central bank is still focused on curbing inflation and expects high interest rates to remain for some time.The Fed also emphasized the need for flexibility in policy changes which means rate hikes could be smaller or larger depending on the data.However, due to the expectation of a smaller rate hike this year, the US dollar failed to show a significant reaction following the release of the report.Meanwhile, the Aussie dollar maintained its strengthening momentum in the Asian session although the gains recorded earlier were slightly reduced.Earlier, the antipodean currency surged higher after being supported by reports that China is considering lifting some restrictions on Australian coal imports.Looking at the development of European currencies, the euro continued to recover from the 3-week low it touched on Tuesday by trading at 1.0600 against the USD.The pound was trading steady after erasing its losses on Tuesday, but gains were limited amid fears of a UK recession.On the other hand, the Canadian dollar displayed a surprising price movement by surging higher against the greenback despite the slump in crude oil prices.The market's focus now shifts to the release of US private sector ADP employment data in the New York session which will be used as an indicator of the NFP figure on Friday.
The USD failed to rise after the FOMC minutes
Aussie dollar sustains strengthening
Focus on US jobs ADP data
The dollar struggled to continue strengthening on Thursday even as the Federal Reserve (Fed) reiterated its commitment to fight inflation.
Minutes of the Fed's policy meeting released early this morning showed that policymakers agreed to slow aggressive rate hikes.
However, the central bank is still focused on curbing inflation and expects high interest rates to remain for some time.
The Fed also emphasized the need for flexibility in policy changes which means rate hikes could be smaller or larger depending on the data.
However, due to the expectation of a smaller rate hike this year, the US dollar failed to show a significant reaction following the release of the report.
Meanwhile, the Aussie dollar maintained its strengthening momentum in the Asian session although the gains recorded earlier were slightly reduced.
Earlier, the antipodean currency surged higher after being supported by reports that China is considering lifting some restrictions on Australian coal imports.
Looking at the development of European currencies, the euro continued to recover from the 3-week low it touched on Tuesday by trading at 1.0600 against the USD.
The pound was trading steady after erasing its losses on Tuesday, but gains were limited amid fears of a UK recession.
On the other hand, the Canadian dollar displayed a surprising price movement by surging higher against the greenback despite the slump in crude oil prices.
The market's focus now shifts to the release of US private sector ADP employment data in the New York session which will be used as an indicator of the NFP figure on Friday.
