US Dollar May Weaken on FOMC Minutes, Euro to Overlook CPI

Talking Points:

  • Cautious tinge in Dec FOMC mins might import on US Dollar
  • Limited ECB impact approaching to see Euro disremember peep Eurozone CPI
  • Yen down as Nikkei soars, Aussie Dollar gains alongside internal yields

The rough set of December’s Eurozone CPI total headlines an differently muted European mercantile information docket. The title year-on-year acceleration rate is approaching to strike 1 percent, a top given Sep 2013. As with yesterday’s equivalent recover from Germany however, a outcome might not do most for a Euro deliberation a singular implications for a instruction of ECB financial process after a executive bank committed to persisting QE by 2017.

Later in a day, a spotlight turns to minutes from final month’s FOMC meeting. Traders interpreted a outcome as broadly hawkish as policymakers upgraded their expansion and acceleration forecasts and projected 3 rate hikes in 2017 compared with September’s call for two. Chair Yellen tried to downplay this narrative however, stressing that most depended on a still-uncertain expansion of mercantile policy. A identical tinge in a Minutes recover might cold bets on assertive tightening, weighing on a US Dollar.

The Yen underperformed in overnight trade as Japan’s benchmark Nikkei 225 batch index roared aloft on a lapse from a New Year holiday, with prices staid to measure a largest daily allege in dual months. Not surprisingly, this weighed heavily on a perennially anti-risk currency. The Australian Dollar advanced, rising alongside front-end bond yields to advise that a understanding change in RBA process bets offering fuel for a ceiling push.

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Asia Session

US Dollar May Weaken on FOMC Minutes, Euro to Overlook CPI

European Session

US Dollar May Weaken on FOMC Minutes, Euro to Overlook CPI

** All times listed in GMT. See a full DailyFX mercantile calendar here.

— Written by Ilya Spivak, Currency Strategist for DailyFX.com

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