The Greenback trades flat as we await the FOMC meeting minutes
Wednesday 22 May, 2019
Daily Currency UpdateUSD - United States DollarThe US dollar index moves sideways this morning as we await the minutes from the FOMC, which will be released at 2:00 pm EST later today. This release should reveal how comfortable the Fed is with the current stance on policy. As Chair Fed Powell recently noted, the incoming data had been broadly in line with expectations reflecting an economy growing at a healthy pace while some of the cross-currents in the outlook have somewhat subsided. Fed official St. Louis President James Bullard said the Fed might have, “...slightly overdone it,” when the bank raised interest rates in December during an interview with Bloomberg News, adding that it is premature to talk about a rate cut.That said, the Committee’s assessment of the economy and the risks around the outlook may have evolved since then and the minutes are likely to sound dated due to the recent developments on the US-China trade negotiations. Regarding the US-China spat, Boston Fed President Eric Rosengren said that the US-China trade dispute adds downside risk to his economic outlook, bolstering the case to stay patient and keep rates steady.In other news, the US is considering adding five Chinese companies involved in the manufacture of surveillance equipment to the blacklist that stops them from using US components or software. Washington is also targeting Chinese tech companies.
Key MoversTheresa May made her final big bet as Prime Minister yesterday, offering the Labour party a "new deal" that included the possibility of a second EU referendum in what she claimed was "the last chance" to deliver Brexit. The British Pound did rally initially on hopes that May's deal will be compelling enough to change the opinion of lawmakers. However, the rally fades quickly, and the Pound continues making new lows. The reality is that her plan to build a cross-party consensus was declared dead on arrival by furious Conservative Eurosceptics; Labour leader Jeremy Corbyn called it "a repackaging of the same old bad deal."
- USD/CAD: 1.3325 - 1.3415 ▼
- EUR/USD: 1.1118 - 1.1176 ▼
- GBP/USD: 1.2555 - 1.2674 ▼
- AUD/USD: 0.6854 - 0.6891 ▼
- NZD/USD: 0.6484 - 0.6505 ▼