“Some participants at the Fed noted that interest rate sensitive sectors had started to show signs of slowing and that, in the eyes of some participants, there was a risk of excessive tightening,” said Brian Daingerfield, chief strategist at G10 FX. at NatWest Markets in Stamford, Conn.
The dollar index fell to 106.39 after the meeting minutes were released, before recovering to 106.55, up 0.1% on the day.
Markets expect the size of the Fed’s next planned rate hike to depend on consumer price inflation and August jobs data, due out ahead of its September meeting.
The odds of a 75 basis point increase in September fell to 40% after the minutes were released, from 52% on Wednesday, with a 50 basis point increase now seen as a 60% chance.
“Everyone is focused on … well, will we really see the Fed in a position where they need to do more massive rate hikes and can the economy handle it? Right now, the economy looks like it can,” he said. Edward Moya, Senior Market Analyst at OANDA in New York.
Meanwhile, the euro gained 0.1% on the day against the dollar $1.0185. The american currencymeanwhile, advanced 0.6% in front of yen to 134.97 yen.
The Pound also lost momentum after an initial jump on data showing British consumer prices climbed 10.1% in July, the highest level in 40 years. Sterling was down 0.3% on the day at $1.2059.
Source: Ambito
David William is a talented author who has made a name for himself in the world of writing. He is a professional author who writes on a wide range of topics, from general interest to opinion news. David is currently working as a writer at 24 hours worlds where he brings his unique perspective and in-depth research to his articles, making them both informative and engaging.
