U.S. Dollar At Two Week Low After FOMC Minutes
October 9th, 2014 Guest post by Jay Hawk at Orbex.
The U.S. Dollar was off across the board against all major foreign currencies on Thursday after Wednesdays release of the FOMC Meeting Minutes for the Fed’s September meeting. According to the minutes, FOMC members showed concern that if the U.S. Dollar continued strengthening, certain segments of the economy could be negatively affected along with a slowdown in inflation.
In addition, the minutes reiterated that their forward guidance was data dependant, the minutes stated, It was emphasized that the current forward guidance for the federal funds rate was data dependent and did not indicate that the first increase in the target range for the federal funds rate would occur mechanically after some fixed calendar interval following the completion of the current asset purchase program. If employment and inflation converged more rapidly toward the Committee’s goals than currently expected, the date of liftoff could be earlier, and subsequent increases in the federal funds rate target more rapid, than participants currently anticipated.