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Dollar dips on dovish Fed minutes

“Success is not final; failure is not fatal: it is the courage to continue that counts.” – Winston Churchill

 

 

 

HEADLINES

 

 

 

  • Dollar falls as investors see Fed minutes as less hawkish than feared
  • U.S. retail sales race to record high; economy shows strength ahead of rate hikes
  • Gold prices near 8-month high as dovish Fed minutes weigh on dollar, yields
  • Oil slides after France and Iran say closer to a nuclear deal
  • The S&P 500 rebounds, closes slightly higher after Fed minutes
  • GBP/USD: Rangebound trading set to remain unless a firm move under 1.35 – Scotiabank
  • EURJPY Near Term: Downside favored

 

 

 

FOREX

 

 

 

Dollar falls as investors see Fed minutes as less hawkish than feared

 

 

The U.S. dollar index was down on Wednesday, hitting its lowest level since Friday after minutes from the last U.S. Federal Reserve meeting suggested policymakers are not set on a particular pace of interest rate hikes.

According to the January meeting minutes released on Wednesday, Fed officials last month agreed that, with inflation widening its grip on the economy and employment strong, it was time to tighten monetary policy, but also that decisions would depend on a meeting-by-meeting analysis of data.

 

 

U.S. retail sales race to record high; economy shows strength ahead of rate hikes

 

 

U.S. retail sales increased by the most in 10 months in January, lifting the level of sales to a record high amid a surge in purchases of motor vehicles and other goods, but higher prices could limit the boost to economic growth this quarter.

The report from the Commerce Department on Wednesday showed underlying strength in the economy ahead of anticipated interest rate increases from the Federal Reserve starting in March, although retail sales in December were much weaker than initially estimated.

 

 

 

COMMODITIES

 

 

 

Gold prices near 8-month high as dovish Fed minutes weigh on dollar, yields

 

 

Gold steadied on Thursday near an eight-month high touched earlier this week, as the U.S. dollar and Treasury yields dipped on less hawkish-than-feared Federal Reserve minutes, and as the Ukraine crisis boosted demand for the safe-haven metal.

 

 

Oil slides after France and Iran say closer to a nuclear deal

 

 

Oil slid more than 2% in early Asian trade on Thursday after both France and Iran said parties are closer to an agreement to salvage Iran's 2015 nuclear deal with world powers, offsetting ongoing concerns over the situation in Ukraine.

U.S. West Texas Intermediate (WTI) crude was trading down $2.50, or 2.7%, at $91.16 a barrel at 0058 GMT, after it ended up 1.7% the previous day.

 

 

 

STOCKS

 

 

 

The S&P 500 rebounds, closes slightly higher after Fed minutes

 

 

Wall Street bounced off session lows Wednesday with the S&P 500 crossing into positive territory by the closing bell after the U.S. Federal Reserve released meeting minutes, which said that while the central bank intends to begin raising interest rates to combat inflation, its decisions would be made on a meeting-by-meeting basis.

 

 

 

ANALYSIS

 

 

 

GBP/USD: Rangebound trading set to remain unless a firm move under 1.35 – Scotiabank

 

 

“Rangebound trading looks set to remain unless the GBP makes a firm move under 1.35 – but it has quickly been bid under the figure on three separate occasions this month.”

“Intermediate support is the mid-figure area and ~1.3520.”

“On the upside, the pound remains limited by 1.3600/10, initially, followed by the mid-figure area; the 200-day MA, above which it hasn’t closed since last Sep, comes next at 1.3694.”

 

 

 

CHART

 

 

 

EURJPY Near Term: Downside favored

 

Technical View: Short position below 132. Target 130. Conversely, break above 132, to open 132.5.

Comments: The pair remains under pressure. Further weakness favored.

Source: Trading Central

 

 

 

CALENDAR

 

 

 

*Times in GMT

 

 

Source: FX Street Economic Calendar


SOURCE

https://www.fxstreet.com/economic-calendar
https://www.reuters.com/markets/europe/euro-holds-gains-after-hopes-easing-ukraine-tensions-2022-02-16/
https://www.reuters.com/business/futures-largely-flat-ahead-retail-sales-data-fed-minutes-2022-02-16/
https://www.reuters.com/business/energy/oil-prices-hold-steady-russia-ukraine-tensions-cool-2022-02-16/
https://www.reuters.com/markets/europe/gold-prices-near-8-month-high-dovish-fed-minutes-weigh-dollar-yields-2022-02-17/

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