Dollar Remains Subdued

The dollar remained soft today despite yesterday’s hawkish FOMC minutes. Some market analysts think that the currency is weak because the December interest rate hike is already factored in. Others say that the minutes showed that US policy makers are still not completely certain that the economic situation warrant tighter monetary policy. Whatever the case, EUR/USD is higher today even though all economic reports released over the trading session from the United States were good.
Philadelphia Fed manufacturing index climbed from -4.5 to 1.9 in November, rising above the 0.1 level predicted by experts. (Event A on the chart.)
Seasonally adjusted initial jobless claims were at 271k last week, in line with expectations and below the previous week’s rate of 276k. (Event A on the chart.)
Leading indicators edged up by 0.6% in October, matching forecasts. The September’s change was revised positively from -0.2% to -0.1%. (Event B on the chart.)

If you have any comments on the recent EUR/USD action, please reply using the form below.

Leave a Reply

Your email address will not be published. Required fields are marked *

− 1 = one