What Was in the FOMC Minutes Last Evening?
Skerdian Meta • 1 min read
Yesterday when the FOMC minutes were released, the Buck lost about 50-60 pips within minutes after the initial wobble of the first few moments.
Instinctively, I thought that there must have been some dovish stuff in the minutes but after having a thorough look at it, I found nothing dovish, at least nothing more than in the last FED meeting.
In fact, what I saw there was pretty hawkish. Most concerns we have seen in previous statements were sort of muted in these minutes. It looks like the guys in charge at the FED have finally accepted the better US and global economic conditions.
The most notable comment there was "the FED officials saw a rate hike fairly soon". That´s as hawkish as it gets when it comes to Yellen and rate hikes.
Yet, the forex market wasn´t convinced. It wasn´t enough and the Buck dived, so I guess the market wanted something more. The market was expecting a set date for the next interest rate hike and when it didn´t get it, it started acting like a spoiled child.
So, the USD lost about half a cent and the losses haven´t been paired yet, but in my opinion, these were some really hawkish minutes.