NEWS: Dove Meetings Records of the Federal Reserve Strike the Dollar
please contact sales@tanchin.hk for any inquiry
The following is a summary of Lukman Otunuga's comments by FXTM Futures Research Analyst, Global Foreign Exchange Broker:
The dollar fell against a basket of major currencies late Wednesday, and the latest FOMC minutes show policymakers are becoming more cautious about whether to raise interest rates further.
Most FOMC members expressed concern about financial market shocks, stagnation of global growth and persistent trade tensions. Participants agreed that the Fed could be "patient" with further policy tightening in an environment of less inflationary pressure. External and domestic risks make the way for future interest rate hikes "less clear than before". The summary of the FOMC meeting may boost market expectations that the Federal Reserve will suspend interest rate hikes this year.
The FOMC minutes were cautious and the popularity of the dollar was hit. At the time of the author's writing, the dollar index fell to 95.20. If the index closes below 95.00, it may clear the way to 94.65 in the short term.