{"id":111094,"date":"2017-08-17T07:20:59","date_gmt":"2017-08-17T11:20:59","guid":{"rendered":"http:\/\/countingpips.com\/?p=111094"},"modified":"2017-08-17T06:59:02","modified_gmt":"2017-08-17T10:59:02","slug":"dovish-fed-minutes-weigh-on-dollar","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/08\/dovish-fed-minutes-weigh-on-dollar\/","title":{"rendered":"Dovish Fed minutes weigh on dollar"},"content":{"rendered":"
August 17, 2017<\/div>
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By IFCMarkets<\/a><\/p>\n

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Dow closes above 22000<\/h2>\n<\/div>\n<\/div>\n

US stocks\u00a0<\/b>ended higher on Wednesday as investors\u2019 risk appetite was boosted by dovish Fed minutes. The dollar erased most of its previous day gains: the\u00a0live dollar index<\/a>\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, closed down 0.4% at 93.472. The\u00a0S&P 500<\/a>\u00a0rose 0.1% settling at 2468.11 led by gains in materials stocks. The\u00a0Dow Jones<\/em>industrial average added 0.1% to 22024.87 in a fourth winning session in a row.\u00a0Nasdaq\u00a0<\/em>gained 0.2% to 6345.11.<\/p>\n

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Stocks rose reversing earlier losses and Treasury yields fell after Fed minutes revealed a few policy makers said the bank could \u201cafford to be patient” before raising interest rates again as they saw a greater likelihood that “inflation might remain below 2% for longer than currently expected.” Most central bank policy makers wanted to wait until an “upcoming” meeting to announce details of planned unwinding of the central bank’s $4.5 trillion in bond holdings. Market participants shrugged off reports US housing starts and building permits were weaker than expected. The news President Trump disbanded the manufacturing council and his strategy & policy forum after a wave of CEOs stepped down from his advisory panels following criticism over the president’s reaction to violence in Charlottesville added to concerns about President\u2019s ability to garner support for his pro-growth policy agenda.<\/p>\n<\/div>\n<\/div>\n

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European stocks rise<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>rose third day in a row on Wednesday helped by weak euro and easing of North Korea tensions. Both the\u00a0euro\u00a0<\/em>andBritish Pound\u00a0<\/em>inched higher against the dollar. The Stoxx Europe 600 index rose 0.7%. Germany\u2019s\u00a0DAX 30\u00a0<\/em>gained 0.7% to 12263.86. France\u2019s\u00a0CAC 40\u00a0<\/a>added 0.7% and UK\u2019s\u00a0FTSE 100\u00a0<\/em>index gained 0.7% to 7433.03.<\/p>\n

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Unexpected decline in UK June unemployment to 4.4% from 4.5% strengthened the Pound. The 2.1% rise in June wages, including bonuses, was also higher than an expected 1.8% increase. Today inflation data will be released at 11:00 CET in euro-zone, the outlook is negative for euro. And at 13:30 CET minutes of the European Central Bank July 20 meeting will be published. Euro fell yesterday on news ECB President Draghi would not use his Jackson Hole appearance next week to signal ECB policy change.<\/p>\n

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Asian stocks slip<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are mostly lower today after dovish Fed minutes showed central bankers were concerned about sluggish US inflation. The yen rose against the dollar which weighed on Japanese stocks. The\u00a0Nikkei\u00a0<\/em>ended 0.1% lower at 19702.63 in thin trading despite data showing Japan\u2019s exports rose for an eighth straight month in July. Chinese stocks are mixed :\u00a0Shanghai Composite Index\u00a0<\/em>is 0.7% higher while Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is down 0.2%. Australia\u2019s All Ordinaries Index is 0.1% lower with the Australian dollar adding to previous day\u2019s gains against the US dollar as unemployment rate fell to 5.6% in July from 5.7% in line with expectations.<\/p>\n

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Oil higher after US inventory draw<\/h2>\n<\/div>\n<\/div>\n

Oil futures prices\u00a0<\/b>are edging higher today after US inventories official report indicated crude inventories dropped by 8.9 million barrels last week. Prices fell yesterday as traders focused on 79000 barrels a day increase in total domestic crude-oil output to 9.502 million barrels a day last week. October Brent crude fell 1% to $50.27 a barrel on Wednesday on London\u2019s ICE Futures exchange.<\/p>\n

Market Analysis provided by IFCMarkets<\/a><\/p>

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Note:
\nThis overview has an informative and tutorial character and is published for free. All the data, included in the overview, are received from public sources, recognized as more or less reliable. Moreover, there is no guarantee that the indicated information is full and precise. Overviews are not updated. The whole information in each overview, including opinion, indicators, charts and anything else, is provided only for familiarization purposes and is not financial advice or \u0430 recommendation. The whole text and its any part, as well as the charts cannot be considered as an offer to make a deal with any asset. IFC Markets and its employees under any circumstances are not liable for any action taken by someone else during or after reading the overview.<\/p>\n","protected":false},"excerpt":{"rendered":"

By IFCMarkets Dow closes above 22000 US stocks\u00a0ended higher on Wednesday as investors\u2019 risk appetite was boosted by dovish Fed minutes. The dollar erased most of its previous day gains: the\u00a0live dollar index\u00a0data show the ICE US Dollar index, a measure of the dollar\u2019s strength against a basket of six rival currencies, closed down 0.4% […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-111094","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111094","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=111094"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111094\/revisions"}],"predecessor-version":[{"id":111102,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/111094\/revisions\/111102"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=111094"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=111094"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=111094"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}