🗓Today at 7:00 pm BST the minutes of the Federal Reserve's latest policy meeting will be published.
Today's publication should bring no changes in terms of communication from the central bank. In January, Jerome Powell confirmed his hawkish stance, not ruling out that there could be a rate hike even at every Fed meeting and it would be appropriate to start reducing the excessive balance quickly enough. Therefore, today we will only get confirmation of what we already know very well, especially after the recent inflation and retail sales data.
Nevertheless, the minutes can provide some interesting details. The market will mainly be looking for clues regarding the number of potential interest rate hikes this year and whether we can expect a bigger first move (ie 50bp hike). Moreover, the minutes could provide a bit more information regarding the start of the balance sheet reduction process.
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Open account Try demo Download mobile app Download mobile appToday the dollar is strengthening, yields are stable, gold is slightly gaining and the indices are in retreat. If the minutes show that the Fed is even more hawkish (although it has shown it many times recently), there is a possibility of a new wave of bond sell-offs (increase in yields), which could support the dollar but hurt precious metals and equities. At the same time, however, we cannot rule out profit taking. Almost everyone knows what today's minutes will show, so if today's publication does not surprise, it may lead to a sell-off of the dollar and indices rebound.
EURUSD is retreating from the resistance area at 1.1400 and may be heading towards support around 1.1350. Source: xStation5
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