According to analysts, the minutes match in general terms with expectationswhat explain the reaction relatively moderate of the markets.
It is that this Wednesday it was known that all the authorities present in the Federal Reserve monetary policy meeting on December 13 and 14 agreed that the US central bank should slow down the pace of its aggressive interest rate hikes, which would allow them to continue raising the cost of credit to control inflation, but in a gradual manner that limits the risks for economic growth.
To this is added that November job postings in the United States indicated a tense labor market, giving the Fed cover to keep its monetary tightening campaign going longer, while other data showed the manufacturing sector contracted further in December.
Minneapolis Fed President Neel Kashkari insisted Wednesday on the need to continue raising rates, and He presented his own forecast that the official interest rate should initially stop at 5.4%.
In this context, the euro rises 0.13% against the dollar, at $1,062. It rose 0.54% on Wednesday after French inflation came in below expectations, fueling optimism about the euro zone economy.
The dollar indexwhich measures the performance of the US currency against a basket of six currencies, remains stable at 104,080 on Thursdayafter having uploaded at the beginning of the session.
The minutes reiterated the message of Fed Hard Line, by stating that “no participant anticipated that it would be appropriate to start lowering the rate target of federal funds in 2023″.
The Japanese yen barely changed at 132.63 units per dollar, after falling 1.23% on Wednesday, with traders betting that the Bank of Japan (BOJ) could soon relinquish its controversial control of the yield curve.
The Sterling was down 0.36% at $1.202, after rising 0.76% on Wednesday.
The Chinese yuan in the continental markets rose more than 0.3%, to 6.875 units per dollar, since the currency continued to be propped up by the measures of reopening of China, despite the increase in COVID-19 cases.
Source: Ambito
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