Dollar turns lower after Fed minutes – THEN IT ACCELERATED TO $90 AT INDEX.
The U.S. dollar erased its previous gains after the Federal Reserve released the minutes from its January meeting. According to the summary, members of the Federal Open Market Committee were not too concerned about the U.S. economy possibly overheating. In line with previous comments from Fed officials, policy makers expect inflation to pick up this year. Still, the language in the minutes stuck with a “gradual” increase in interest rates rather than taking a more hawkish approach, which could have disappointed investors looking for a more hawkish tone. The Fed is expected to hike interest rates three times in 2018, although analysts are bracing for more raises than that given supportive U.S. data. The ICE U.S. Dollar Index DXY, -0.04% turned lower following the minutes, erasing its previous gains to dip 0.1% to 89.659. The euro EURUSD, -0.0570% which is the dollar’s main rival, turned positive in response, last buying $1.2346. The greenback held its upper hand position against the Japanese yen USDJPY, -0.48% and British pound GBPUSD, -0.0503% even though it pared some of its gains against them. Read More @ https://www.marketwatch.com/story/dollar-turns-lower-after-fed-minutes-2018-02-21
Updated Feb. 21, 2018 8:17 p.m. ET
JAPAN NEXT CHESS MOVE – Japan PM’s adviser says BOJ should consider buying foreign bonds;
TOKYO (Reuters) – The Bank of Japan should consider buying foreign bonds as part of efforts to reflate the economy during Governor Haruhiko Kuroda’s second term at the central bank helm, an economic adviser to Prime Minister Shinzo Abe said. Read More @ https://uk.reuters.com/article/us-japan-economy-boj-hamada/japan-pms-adviser-says-boj-should-consider-buying-foreign-bonds-idUKKCN1G602X
TECHNICAL CHART OF USD INDEX.
NEWS THAT MIGHT AFFECT YOUR TECHNICAL TRADES
- 3.45pm – French Final CPI – we believe it will be better then -0.1%; we are now looking for a good entry to BUY EURUSD.
- 5.00pm – German Ifo Business Climate – no change or better.
- 5.30pm – UK GDP is expected to be good; we maintain BUY for GBP – looking for a good entry at BB – OS.
- 8.30pm – Time for ECB to be responsible after the FED stayed optimistic. Time for EUR to move back to 1.26. Expecting good Minutes from ECB today.
- 9.30pm – Canada is having a bad moments with CAD losing ground against USD; tonight we are expecting good data from Canada. Time to SELL USDCAD @ BB – OB.
- 11.00pm – Expect Dudley from FED to maintain the momentum from FED minutes. We are not convinced with USD rally yet.
Do remember that USD is struggling @ $90 at the index – if there is any break at $90 be cautious and stay focus on your good money management habits at all time.
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