Dollar extends losses ahead of Fed's minutes

Economies.com
2022-11-23 12:11PM UTC

Dollar fell in European trade on Wednesday against a basket of major rivals, extending losses for second day away from two-week highs on profit-taking. 

 

Such decline comes ahead of the Fed's latest meeting minutes, which will provide clues on the path forward for policies and interest rates. 

 

The Index

 

The dollar index fell 0.25% to 106.81, with a session-high at 107.22, after closing down 0.6% yesterday, the first loss in four days on profit-taking off two-week highs at 107.99.

 

Fed Minutes

 

As of 19:00 GMT, the Federal Reserve will release the minutes of the November 1-2 meeting, at which policy makers voted to increase interest rates by 75 basis points for the fourth time in a row to 4%, the highest since December 2007.

 

The Fed asserted back then the fight against inflation requires continuous increases in borrowing rates until consumer prices are brought under control.

 

Interest Rate Prospects

 

Markets now are pricing a 75% chance of a 0.5% rate hike in December, and a 25% chance of a 0.75% rate hike.

 

Naturally, a bullish spirit in the minutes will bolster the dollar's standing, however a bearish statement will sharpen its losses. 

Forex and Currency News

Forex News

Forex

The dollar declines after weak US data
2024-03-01 21:25PM UTC
The dollar declined against most major rivals on Friday following weak data and speculation about ...
EUR/USD news

Forex

Euro gains ground ahead of European inflation data
2024-03-01 08:14AM UTC
Euro rose in European trade on Friday against a basket of major rivals, holding above one-week lows ...
Forex News

Forex

Dollar edges up after inflation data
2024-02-29 21:46PM UTC
Dollar rose against most major rivals on Thursday following US inflation data, which could have an ...

Forex Technical Analysis

GBP USD Analysis

Forex

Midday update for the GBPUSD 01-03-2024
2024-03-01 10:39AM UTC
The GBPUSD pair keeps its stability below 1.2650, to keep the correctional bearish trend valid for ...
EUR USD Analysis

Forex

Midday update for the EURUSD 01-03-2024
2024-03-01 10:39AM UTC
The EURUSD pair fluctuates around the EMA50 since morning, and didn’t show any strong move ...
GBP USD Analysis

Forex

The GBPUSD breaks the support - Analysis - 01-03-2024
2024-03-01 08:47AM UTC
The GBPUSD pair faced clear negative pressure yesterday, as it broke 1.2650 level and closed the ...