FOMC Minutes and the US DollarNovember 17, 2013
FOMC Minutes are due this week and that will be the main event markets will focus on. In between the actual FOMC meeting that was taking place two weeks ago and the minutes to be released we had the future to be Charwoman of the Fed Ms. Yellen testifying in front of the US Senate and she basically told that there is no way the Fed will start tapering this December.
In the prepared statement that what released one day earlier she even said that the US economy will need more stimulus to keep the recovery pace and markets took that opportunity to sell the usd.
However, things may change this week as previous FOMC meeting brought uncertainty and showed us a Fed that is not sure what to do. The result was a bid tone for the usd and we are expecting the same tone and outcome to come when the minutes are going to be released this week. We might even go in a new lower degree cycle when the usd will be bought, probably until the end of the year or until the December FOMC. It remains to be seen.
Capital Properties FX Team