The market saw outflows from the USD during last weeks opening sessions, as hopes over the upcoming US-China trade negotiations gathered pace alongside comments from President Donald Trump. Trump was critical of the Federal Reserve and Jerome Powell in a Reuters interview and said he was hoping to get a little help from the Fed. The comments are not the first time that the President has stepped away from tradition and been critical of the Federal Reserve’s current rate hike path, with two hikes already this year and another on the near horizon.
Following this, the Federal Reserve released its latest minutes midweek, which showed that the FOMC is expected to continue to raise rates as needed. The initial reaction for the USD saw it sell-off, perhaps due to the fact that the Fed admitted they were concerned that GDP could slow in the second half of the year due to continuing trade disputes.
On the trade war front, US and Chinese officials began further trade talks in Washington and at midnight last night, the latest $16 billion worth of tariffs on Chinese imports went into effect. The expectations on the ongoing trade talks between the US and China the world's two largest economies are low as they are taking place between lower-level officials.
Ending the week, the US has a slew of data releases, which included slightly hawkish numbers as both Continuing Jobless Claims and Initial Jobless Claims posted a better than expected result. Initial Jobless claims dropped to 210K from last weeks 212k vs. expectations of 217K.