19 Feb 2015
USD slides after FOMC Minutes – TradeTheNews
FXStreet (Barcelona) - The TradeTheNews Team comments that USD extended its slide after dovish than expected FOMC minutes.
Key Quotes
“The yield on the US 10-year note was down nearly 10bps, reversing some of the 50bp rise of the past 2 weeks, and greenback sank while gold rallied in the wake of surprisingly dovish FOMC policy meeting minutes.”
“Some of the market chatter went as far as to opine that Fed chair Yellen waded into the global currency war, with the meeting pointing directly at the US dollar strength as posing a headwind to US exports and growth.”
“External concerns, specifically slowdown in China and global disinflationary pressure, were also increasingly more visible in the language perceived to be rather cautious by the markets.”
“Finally, many participants referred to the risk of dropping the "patient" language as a signal of a shift in market expectations for the beginning of policy firming and were worried that "financial markets might overreact".”
“US Dollar extended its slide in the holiday-thinned Asian session, falling below 118.50 in USD/JPY while EUR/USD rose above 1.1420 - about 80pip loss for the greenback for both pairs relative to the pre-minutes levels.”
Key Quotes
“The yield on the US 10-year note was down nearly 10bps, reversing some of the 50bp rise of the past 2 weeks, and greenback sank while gold rallied in the wake of surprisingly dovish FOMC policy meeting minutes.”
“Some of the market chatter went as far as to opine that Fed chair Yellen waded into the global currency war, with the meeting pointing directly at the US dollar strength as posing a headwind to US exports and growth.”
“External concerns, specifically slowdown in China and global disinflationary pressure, were also increasingly more visible in the language perceived to be rather cautious by the markets.”
“Finally, many participants referred to the risk of dropping the "patient" language as a signal of a shift in market expectations for the beginning of policy firming and were worried that "financial markets might overreact".”
“US Dollar extended its slide in the holiday-thinned Asian session, falling below 118.50 in USD/JPY while EUR/USD rose above 1.1420 - about 80pip loss for the greenback for both pairs relative to the pre-minutes levels.”