19 Aug 2015
EUR/USD: FOMC minutes, nail in dollar's coffin - FXStreet
FXStreet (Guatemala) - Valeria Bednarik, chief analyst at FXStreet explained that the American dollar edged sharply lower across the board, finally giving up after the release of the FOMC Minutes.
Key Quotes:
"The FOMC Minutes were leaked by media 20 minutes before the official release."
"Minutes showed that in their late July meeting, the FED policymakers expressed their concerns about lagging inflation, and that a stronger dollar and Chinese developments, are threatening the US economy."
"The meeting took place before Chinese devaluation, which means that in their upcoming meeting, the Central Bank may well consider such risk has increased and therefore delay a rate hike.
Additionally, most of the FOMC members agreed that "the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point.” Earlier in the day, US inflation increased 0.1% in July, below expectations of 0.2% and previous 0.3%, with the annual pace steady at 0.2%, meaning that inflation continues to be a big issue in the world's first economy."
"In Europe, the outstanding note came with the final approve to Greek's bailout, as the EU countries have mandated to the ESM to make to a maximum of €86bn available to finance Greece."
"The EUR/USD pair fell down to 1.1017 before Wall Street's opening bell, from where the greenback slowly eased, to finally sunk following FED's Minutes. The pair skyrocketed up to 1.1127, finding selling interest around a key Fibonacci resistance, the 23.6% retracement of the bullish August run between 1.0847 and 1.1213, at 1.1130.
Key Quotes:
"The FOMC Minutes were leaked by media 20 minutes before the official release."
"Minutes showed that in their late July meeting, the FED policymakers expressed their concerns about lagging inflation, and that a stronger dollar and Chinese developments, are threatening the US economy."
"The meeting took place before Chinese devaluation, which means that in their upcoming meeting, the Central Bank may well consider such risk has increased and therefore delay a rate hike.
Additionally, most of the FOMC members agreed that "the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point.” Earlier in the day, US inflation increased 0.1% in July, below expectations of 0.2% and previous 0.3%, with the annual pace steady at 0.2%, meaning that inflation continues to be a big issue in the world's first economy."
"In Europe, the outstanding note came with the final approve to Greek's bailout, as the EU countries have mandated to the ESM to make to a maximum of €86bn available to finance Greece."
"The EUR/USD pair fell down to 1.1017 before Wall Street's opening bell, from where the greenback slowly eased, to finally sunk following FED's Minutes. The pair skyrocketed up to 1.1127, finding selling interest around a key Fibonacci resistance, the 23.6% retracement of the bullish August run between 1.0847 and 1.1213, at 1.1130.