The minutes from the October FOMC meeting have seen most of the Fed members agree to the fact that the US economy was ready for rate hikes by December amidst diminishing risks to the global economy. On inflation, the Federal Reserve members were still not reasonably ‘confident’ on the inflation outlook. The minutes reiterated that the liftoff decision would be data dependent with the risks being finely balanced. While the US Dollar rallied into the release of the minutes, the Greenback took a pause as the commodities and most of the risk currencies managed to bounce back on profit-taking. The US S&P 500 Index took the news in its stride, closing on a bullish note at 2078 yesterday. Previously broken support at 2086 is likely to be tested sooner than later and established longer-term resistance at 2086 could potentially pose downside risks to the gains in the S&P 500.
US Dollar Eases on FOMC Minutes
Daily Analysis - 19/11/2015