Yesterday’s high: $1.3241
Yesterday’s low: $1.3181
FOMC Minutes Reveal Inflation Concerns
The US Dollar retreated against the majority of its peers yesterday evening following the release of the minutes from the Federal Reserve’s most recent policy meeting.
While the minutes suggest that the Fed is still targeting another rate hike by the end of the year, policymakers appeared a little more cautious regarding inflation, with some suggesting that the drop in inflationary pressure may not be temporary.
Meanwhile, the Pound came under pressure on Wednesday as investors were spooked by comments from Chancellor Philip Hammond, in which he said that the government has not budgeted for a ‘no deal’ Brexit, suggesting that the UK may not be prepared for a worst case scenario.
USD Outlook: Pound to be Bolstered by Haldane Comments?
A speech by Bank of England (BoE) Chief Economist Andy Haldane could push the Pound higher later this afternoon as investors look for any signs that he may support a rate hike in November.
Meanwhile, USD investors will also be on the lookout for central bank speeches later today from Federal Bank Governors Brainard and Powell, with markets hoping that they will strike a more upbeat tone than the recent minutes.
14:00 UK BOE Haldane Speech
15:30 US Fed Brainard Speech
15:30 US Fed Powell Speech
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