Fed Minutes Provides Limited Support for US Dollar

The US dollar has been rather soft during today’s trading but the release of Federal Reserve’s policy minutes changed that. While the currency slipped immediately after the release, it quickly bounced and started to move up, though it looks like the currency’s upward momentum has run its course.
The minutes demonstrated quite a hawkish rhetoric that suggested that chances for an interest rate hike still remain. The notes talked about the view of policy makers on the balance of risks to economic growth:

Most continued to see the risks to real activity and unemployment as nearly balanced, but many acknowledged that recent global economic and financial developments may have increased the downside risks to economic activity somewhat.

Despite economic slowdown abroad, Board members “agreed that developments over the intermeeting period had not materially altered the Committee’s economic outlook.”
The announcement allowed the dollar to attempt rebound against its rivals, though the rally was limited and has halted currently. The greenback was unable to stop its decline versus the Great Britain pound, which has recovered following the earlier drop.
EUR/USD traded at about 1.1276 GMT after opening at 1.1236 and rising to the session high of 1.1317. USD/JPY was near 119.91, down from the open of 120.01 but up from the daily low of 119.64. GBP/USD climbed from 1.5316 to 1.5356 after reaching the daily minimum of 1.5263.

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