💲 USD continues to gain as FOMC minutes lacked strong, dovish hints
FOMC minutes from December 12-13, 2023 meeting offered no major surprises. On one hand, the document noted that almost all FOMC members saw a lower rate level than current as appropriate for the end-2024. On the other hand, it was also noted that developments may warrant keeping policy rates at higher levels for longer than currently anticipated. A key takeaway from the release is lack of strong, dovish hints. Fed Chair Powell acknowledged during the post-meeting press conference in December that rate cuts were discussed at the meeting, triggering a strong risk-on rally in the markets. However, there was no follow-up on this in minutes, suggesting that rate cut discussion are not as 'live' as some had hoped.
Market reaction was rather muted. USD gained, with EURUSD briefly trading below 1.09 mark. Equity indices moved lower in a knee-jerk move before recovering part of the drop later on. GOLD moved lower and looked towards daily lows.
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Source: xStation5
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