Today everything revolves around the minutes of the last meeting of the Federal Reserve, while the bulls they hope to find indications that the aggressiveness of the president of the Fed, Jerome Powell, was conditioned by a strong reading of the Consumer Price Index (CPI).
Ready to scrutinize the Fed minutes
“Today, all eyes are on the FOMC minutes. A further rally in risk assets is expected if the minutes give any clues as to the conditionality of Powell’s aggressive stance after the meeting on prolonged stickiness in inflation readings. In the absence of such indications, risk bulls may not have much to hold on to.given that the November meeting remained largely hawkish and the Fed’s post-meeting (and also post-CPI) discourse has been rather cautious of a dovish reversal.”
“The US dollar has faced a new round of selling. We do not rule out that this correction will last a bit longer, but we still expect a rather radical reversal of the dollar’s bearishness in December, as the Fed remains broadly hawkish.energy prices are rising again and the global economy is slowing down.”
Source: Fx Street