The dollar Index climbed to a multi-month high ahead of FOMC meeting minutes, with reports suggesting a cooling of US economic momentum was behind the USD’s rise (and the tick higher in the fixed income complex too).
The index now eyes the March high of 93.439, technicians said. The reaction after JOLTS data today was Treasury and USD positive. Some desks attributed the action to book squaring ahead of Fed meeting minutes, where the hope was that the Fed would unveil more detail on its plan for tapering asset purchases.
Fedwatchers note that a consensus is yet to be formed on the details of tapering among FOMC officials, with the window somewhere between September 2021 and June 2022, though the pace of tapering is likely to be slow (many desks are suggesting around USD 10bln/month, implying a tapering process that lasted a year).
The index now eyes the March high of 93.439, technicians said. The reaction after JOLTS data today was Treasury and USD positive. Some desks attributed the action to book squaring ahead of Fed meeting minutes, where the hope was that the Fed would unveil more detail on its plan for tapering asset purchases.
Fedwatchers note that a consensus is yet to be formed on the details of tapering among FOMC officials, with the window somewhere between September 2021 and June 2022, though the pace of tapering is likely to be slow (many desks are suggesting around USD 10bln/month, implying a tapering process that lasted a year).