USD Extends Losses-FOMC Recap - Forex News by FX Leaders

USD Extends Losses-FOMC Recap

Posted Wednesday, November 22, 2017 by
Shain Vernier • 1 min read

The FOMC minutes are out, and the currency markets have seen an uptick in participation amid the release. The USD has continued to show weakness across the majors, posting considerable losses against the EUR, GBP, JPY, CAD and CHF.

FOMC Minutes

November’s FOMC meeting came and went with very little fanfare, as keeping the status quo was the order of the day. However, December is likely to be a very different story. Today’s FOMC minutes reinforced this notion with definitive language out of its members.

Empty roomThe FED Can Still Move Markets With An Empty Conference Room!

Here are the key points coming across the wires from the FOMC minutes:

  • Positive sentiment among members regarding growth, labor, consumer spending, and manufacturing.

  • Since September, “the labor market has continued to strengthen at a solid rate.”

  • A presence on the committee took a cautious tone towards equity valuations, stating “a sharp reversal in asset prices could have damaging effects on the economy.”

  • “Regulatory changes” were credited for providing growth and market gains in recent years.

  • Inflation is still lagging, with “upcoming data” being crucial to determining whether the 2% target is attainable.

Overview

The FOMC minutes are often convoluted and full of nuance. Today’s release doesn’t deviate from that pattern much, but dovish undertones are being interpreted by the markets. Currently, we are seeing bolstered participation, giving favor to a weakened USD.

Be sure to stay tuned to FX Leaders for analysis and trade signals facing the USD. As 2017 rolls towards its conclusion, these markets are primed to heat up.

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About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
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