7:23 PM · 17 August 2022

Daily summary: Slightly dovish minutes reduce chances of another massive hike

  • Minutes were perceived as slightly dovish, due to the lack of a clear major hawkish message
  • The Fed sees the need to tighten all the time, but at the same time also sees the need to study the impact
  • Many members see the risk of a tighter tightening than required
  • Oil stocks fell by 7 million barrels, with exports at a record low, and with a smaller release of strategic reserves
  • The oil market could be at risk of a rebound when the US decides not to continue releasing reserves
  • US retail sales did not rise as a whole, but grows 0.4% m/m on a core basis
  • Eurozone GDP came in slightly below expectations, at 3.9% y/y on expectations of 4.0% y/y 
  • EURUSD tests near 1.0200 level after dovish minutes
  •  S&P 500 recovers, but still loses 0.25% after the minutes, and Nasdaq trades near yesterday's levels
  • Gold loses 0.5%, while oil gains almost 1.0% thanks to high decline in stocks
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