{"id":148260,"date":"2019-05-23T10:11:12","date_gmt":"2019-05-23T14:11:12","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=148260"},"modified":"2019-05-23T10:09:00","modified_gmt":"2019-05-23T14:09:00","slug":"usd-rises-despite-dovish-fomc-minutes","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/05\/usd-rises-despite-dovish-fomc-minutes\/","title":{"rendered":"USD Rises Despite Dovish FOMC Minutes"},"content":{"rendered":"
May 23, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

USD Strengthens Despite FOMC Vowing to Hold Rates<\/strong><\/h2>\n

The US dollar has strengthened over the European morning on Thursday, extending gains in the wake of yesterday\u2019s FOMC meeting minutes. The gains have come despite\u00a0the minutes revealing that the Fed is not looking to raise rates anytime soon<\/strong>\u00a0with some members judging:<\/p>\n

\u201cIn light of recent,\u00a0softer inflation readings<\/strong>, some viewed the downside risks to inflation as having increased\u201d.<\/p><\/blockquote>\n

USD index has broken to fresh 2019 highs today, trading 98.11 last as safe haven flows favour USD, with equities sliding.<\/p>\n

EUR Weaker Following Soft Data<\/strong><\/h2>\n

EURUSD has been weighed upon by the resurgent USD. The pair broke down below the 1.1135 support level this morning.\u00a0Weaker than expected eurozone PMI data sets this morning have once again brought eurozone economic concerns to the forefront.\u00a0<\/strong>And the release of the ECB meeting minutes today is likely to further this issue<\/p>\n

Pound Down on Politics<\/strong><\/h2>\n

GBPUSD is heavily lower today as political turmoil keeps sentiment pressured.<\/strong>\u00a0Theresa May\u2019s Conservative party are widely expected to lose in the MEP elections today, allowing Nigel Farage\u2019s\u00a0Brexit<\/a>party to take seats in Europe. This could devastate the current leadership. GBPUSD has broken below the 1.2670 level again today, continuing its run lower.<\/p>\n

Risk Sentiment Weakening Again<\/strong><\/h2>\n

Risk sentiment has weakened into the penultimate trading day of the week.<\/strong>\u00a0This has led\u00a0the SPX500 sharply below the 2856.30 level to trade 2827.68 last<\/strong>. Rising tensions in the Middle East along with the\u00a0heightened trade war concerns<\/a>\u00a0are weighing on risk appetite once again.<\/p>

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String Safe Have Inflows Seen<\/strong><\/h2>\n

Safe havens have been strongly higher this morning, benefitting from the risk off tone.\u00a0Both gold and JPY are higher against the US dollar.<\/strong>\u00a0USDJPY is trading 110.01 last, with price turning back down towards the 109.70 level broken last week.<\/p>\n

Looking ahead today, we have JPY CPI due over the Asian session. Expectations are for this to have increased to 0.9% in April from 0.5% prior. Meanwhile, XAUUSD, at 1276.41 last, is doing its best to try and get back up to the 1280.58 level which has been a key price for the gold market this year.<\/p>\n

Further Inventories Build Caps Crude<\/strong><\/h2>\n

Crude oil has been heavily lower again today as the market digests news of yet another build in US crude stores.<\/strong>\u00a0The latest EIA report showed a further rise in US oil stores last week, along with increased US crude production. Along with concerns over the intensifying US\/China trade war, crude has been weighed down, despite supply disruption fears linked to tensions in the Middle East. Crude trades 60.39 last as price challenges the 60.41 support level.<\/p>\n

Commodity Currencies Crushed<\/strong><\/h2>\n

The breakdown in oil prices, along with the resurgent US dollar, have fuelled a sharp reversal in USDCAD over the last 24 hours.<\/strong>\u00a0USDCAD has rocketed from lows of mid 1.33 to trade 1.3475 last, breaking back above the key 1.3469 level. Little on the domestic data front today will keep CAD driven by USD and oil flows.<\/p>\n

AUDUSD has been net sold over the European morning again on Thursday with price now sitting on the .6864 low<\/strong>, which continues to be under threat. Rising trade war concerns, tumbling oil and a stronger USD don\u2019t make for a very good outlook in AUDUSD over coming sessions.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex USD Strengthens Despite FOMC Vowing to Hold Rates The US dollar has strengthened over the European morning on Thursday, extending gains in the wake of yesterday\u2019s FOMC meeting minutes. The gains have come despite\u00a0the minutes revealing that the Fed is not looking to raise rates anytime soon\u00a0with some members judging: \u201cIn light of […]<\/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-148260","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148260","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=148260"}],"version-history":[{"count":2,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148260\/revisions"}],"predecessor-version":[{"id":148274,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/148260\/revisions\/148274"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=148260"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=148260"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=148260"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}