Markets on Thursday: Hawkish Minutes Can’t Boost the USD
Attention was back on the US economic situation on Wednesday and markets were keen to shake-off the US-China trade wars.
US CPI came in beneath expectations, however annually the rate is looking to be 2.4%. This is right in the target band for the Fed and they said as much in the FOMC statement.
With inflation on the rise, they now have scope for a faster pace of interest rate hikes. That should be bullish for the USD, but after a slight bump, the dollar fell.
The USD/JPY and EUR/USD ran into support and resistance and didn’t mount too much of a fight.
Bitcoin is still trading below resistance at 7,000. The digital currencies have been a little quiet in the last few sessions as price looks to try and recover.
Key Support
As expected we drifted back down to the 89.50 support level and got a bit of a bounce. The FOMC and CPI didn’t really provide much of a spark at all. Even though theoretically we should be seeing some upside.
It appears that there are still sellers present and we won’t be able to get a rebound until they have finished putting on the downward pressure.
I am looking for some more upside on Thursday, although we don’t have much to work with at the moment.
US Dollar Index (DXY)- 240 min Chart.
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