{"id":132418,"date":"2018-08-23T06:33:46","date_gmt":"2018-08-23T10:33:46","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=132418"},"modified":"2018-08-23T06:33:46","modified_gmt":"2018-08-23T10:33:46","slug":"dollar-weakens-more-after-fed-minutes-highlight-risks","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/08\/dollar-weakens-more-after-fed-minutes-highlight-risks\/","title":{"rendered":"Dollar weakens more after Fed minutes highlight risks"},"content":{"rendered":"
August 23, 2018<\/div>
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By IFCMarkets<\/a><\/p>\n

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US market ends mixed after Fed minutes<\/h2>\n<\/div>\n<\/div>\n

US stock market\u00a0<\/b>ended marginally lower on Wednesday. The\u00a0S&P 500<\/a>\u00a0inched lower 0.04% to 2861.82. The\u00a0Dow Jones<\/em>industrial average lost 0.3% to 25733.60.\u00a0Nasdaq\u00a0<\/em>composite index however gained 0.4% to 7889.10. The dollar weakening continued as Fed minutes showed officials were concerned about trade disputes\u2019 negative impact: 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, lost 0.1% to 95.075 but is rising currently. Stock index futures point to mixed openings today.<\/p>\n

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Trade dispute concerns were a topic of central bank officials\u2019 discussions as most of them supported another interest rate hike in September. However a drag on global economy from continued trade disputes is seen as a reason to question the further pace of monetary tightening as \u201cmost expressed the view that an escalation in international trade disputes was a potentially consequential downside risk for real activity.\u201d Fed fund market participants are currently pricing in 96% probability of a rate hike in September and 60% chance of another in December. Trading was relatively thin with the volume on US exchanges at 5.26 billion shares, compared to the 6.42 billion average over the last 20 trading days.<\/p>\n<\/div>\n<\/div>\n

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DAX 30 opens lower than main European indices<\/h2>\n<\/div>\n<\/div>\n

European stocks\u00a0<\/b>ended little changed on Wednesday as investors awaited the Federal Reserve minutes. The\u00a0GBP\/USD<\/em>\u00a0and\u00a0EUR\/USD<\/a>\u00a0slowed their climb but both are lower currently. The Stoxx Europe 600 less than 0.1%. Germany\u2019s\u00a0DAX 30\u00a0<\/em>ended marginally higher at 12385.70. France\u2019s\u00a0CAC 40\u00a0<\/a>rose 0.3% and UK\u2019s\u00a0FTSE 100\u00a0<\/em>added 0.1% to 7574.24. Markets opened mixed today.<\/p>\n

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Pound and euro got a lift from UK Brexit minister Dominic Raab\u2019s Tuesday tweet that he was \u201cconfident\u201d a deal could be struck, and that Brexit negotiations would be \u201ccontinuous\u201d from now on, though they were in the final stage. Brexit negotiations resumed on Tuesday and the prospect of a \u201cno-deal Brexit \u201d, when the final deadline of March 2019 for the UK exit could pass without any trade agreement ratified, is a major drag on UK economy.<\/p>\n<\/div>\n<\/div>\n

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Asian indices higher while US and China enforce tariffs<\/h2>\n<\/div>\n<\/div>\n

Asian stock indices<\/b>\u00a0are mostly in positive territory despite enacting of 25 percent tariffs on $16 billion worth of each other\u2019s goods by United States and China today.\u00a0Nikkei\u00a0<\/em>ended 0.2% higher at 22410.82 helped by continued yen slide against the dollar. China\u2019s stocks are mixed: the\u00a0Shanghai Composite Index\u00a0<\/em>is up 0.4% while Hong Kong\u2019s\u00a0Hang Seng Index\u00a0<\/em>is 0.5% lower. Australia\u2019s All Ordinaries Index extended losses another 0.3 percentage points despite accelerated Australian dollar fall against the greenback.<\/p>\n

\"AU200\"<\/p>\n

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Brent\u00a0<\/a>slips<\/h2>\n<\/div>\n<\/div>\n

Brent futures prices\u00a0<\/b>are pulling back today. Prices jumped yesterday after the Energy Information Administration reported bigger than expected decline in crude stockpile: US domestic crude supplies dropped by 5.8 million barrels last week as refining runs hold near record high when 5.2 million barrels fall was forecast. Prices ended sharply higher yesterday: October Brent crude rose 3% to $74.78 a barrel on Wednesday.<\/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 US market ends mixed after Fed minutes US stock market\u00a0ended marginally lower on Wednesday. The\u00a0S&P 500\u00a0inched lower 0.04% to 2861.82. The\u00a0Dow Jonesindustrial average lost 0.3% to 25733.60.\u00a0Nasdaq\u00a0composite index however gained 0.4% to 7889.10. The dollar weakening continued as Fed minutes showed officials were concerned about trade disputes\u2019 negative impact: the\u00a0live dollar index\u00a0data show […]<\/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-132418","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/132418","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=132418"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/132418\/revisions"}],"predecessor-version":[{"id":132424,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/132418\/revisions\/132424"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=132418"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=132418"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=132418"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}