FOMC minutes today will hog the limelight before the December Fed hike and U.S. dollar is trading lower versus the G10 basket. Euro remains one of the weakest currencies on political uncertainties in Germany. Meanwhile, the Australian dollar posted a rebound after RBA Governor Lowe comments.
Traders focus today will be on the FOMC minutes later in the day and they should be hawkish as the Federal Reserve prepares to raise interest rates next month. The U.S. dollar traded lower during Tuesday and early Wednesday against all the major currencies despite that the existing home sales rose strongly.
The single currency extended its losses at the start of the NY trading session yesterday and had its biggest drop on the Norwegian krone. There is nothing notable to report on Germany’s political situation, however, it appears that like Chancellor Angela Merkel, the public prefers a new election over a minority government. Yesterday, the ECB Executive member Coeure gave a speech and referred ‘European recovery is the strongest for the last decade, and the broadest for the last two decades.’ But inflation ‘remains weak’ even though there are ‘some signs’ of picking up.
Read the full financial markets daily report on JFD Research.