U.S. dollar stabilized ahead of the Fed’s minutes release
The U.S. dollar has stabilized ahead of the Federal Reserve’s (Fed’s) latest minutes release. This might be driven by investors’ more risk-averse behavior, as they await information on the following monetary policy course, outlook for inflation and interest rate hikes.
Minutes of the Fed’s meeting are to be released today, on November 23. Expectations of many are focused on the central bank’s announcement of a possible slowdown in rate hikes. In November, Fed Chair Jerome Powell outlined this probability, although he also highlighted the fact that borrowing costs would continue to rise at the same pace.
At the same time, the U.S. central bank continues to demonstrate its intention to fight inflation by monetary policy tightening. The forecasted rate peak of 5.5% was even shifted to September 2023, which is sooner than it was previously stated.
The issue of inflation is currently of less importance in the foreign exchange market. Thus, according to economists at Commerzbank, dollar bears will not suffer losses even on the release of optimistic nonfarm payrolls.
Yesterday at 12:16 PMObviously there has been a structural shift in the markets toward a bearish dollar position. According to economists at Internationale Nederlanden Groep (ING), current U.S. nonfarm payrolls data may not cause an inversion of this trend.
Yesterday at 12:10 PMEuropean Central Bank President Christine Lagarde stated that inflation expectations should not change. People should be confident that price growth will return to the target level.
Yesterday at 11:56 AMCentral banks have recently been stepping up measures to combat global inflation. Investors, meanwhile, are actively discussing the continuation of high price levels amid limited supply.
Yesterday at 11:30 AMThe focus is on the OPEC+ meeting and the entry into force of bans related to the import of Russian oil.
Yesterday at 12:59 PM