Forex Market News
The Fed minutes gave volatility a shot in the arm, VIX down 12%! Highlights are:
“the concern was raised that the reference to ‘considerable time’ in the current forward guidance could be misunderstood as a commitment rather than as data dependent.” So, this will make inflation and jobs data releases very volatile and push the markets about more than necessary.
“the persistent shortfall of economic growth and inflation in the euro area could lead to a further appreciation of the dollar and have adverse effects on the U.S. external sector.” So, the greenback strength is worrying them already.
Basically the read is that no hurry to raise rates after they finally quit the QE program this month.
The markets took off as the release came out and the US dollar dived. The US dollar I still see strength in it, the market will still be expecting a rate rise next year and the dollar will run with that expectation. The key will be watching the US inflation and Non-Farm Payrolls. However, there will be some correction (weakness) in the greenback off this release for a few more sessions yet.