Slightly dovish FOMC minutes failed to trigger major moves on the markets,
FOMC minutes release was a key macro event of the day. Document related to May 2-3, 2023 meeting during which it was strongly hinted that the rate hike cycle in the United States may have ended already. Having said that, investors were awaiting the release eagerly in hopes for more details on whether the Fed will indeed pause or make another move at the next meeting. Nevertheless, the release turned out to be a non-event largely with minutes not showing anything new. It was highlighted that the Fed should remain flexible and refrain from strongly hinting on incoming cuts or hikes. Overall, minutes can be seen as slightly dovish but it should be noted that recent comments from Fed members were rather hawkish.
As such, reaction on the markets was minimal. USD moved slightly higher in a knee-jerk move but has since erased all of those gains and is now trading lower compared to pre-minutes levels. US equity indices moved around 0.1% lower in a knee-jerk move and has largely held on those levels since. Gold swung in the first minutes but has ultimately moved higher.
EURUSD recovered from a knee-jerk drop that occured after minutes release and is now trading higher compared to pre-minutes levels. Nevertheless, scale of the move is limited. Source: xStation5
