USD bulls attempt a quick recovery of losses

The USD bulls were quick to recover any losses encountered following the comment provided from the FOMC Minutes that it will be in no hurry to begin raising US interest rates, with the USD driving higher against both the major currencies and metals yesterday. The reason for the reduced USD softness was noted in yesterday’s market report, where it was mentioned that USD weakness was not expected to become a longerterm trend because the “no hurry” indications just ended continuous speculation that the Federal Reserve will not be raising US interest rates in the next few months.

As reiterated on a high variety of occasions, the Federal Reserve were not in a hurry to conclude QE and it was never going to be in a hurry for begin raising US interest rates either. For one reason or another, the continued progress the US employment sector has made has consequently led to ambitious optimism that the FOMC might have been inclined to raise interest rates as early as March 2015. This was extremely ambitious and it has been ambitious to expect this to happen since the end of Summer 2014 to be honest.

The strengthening USD was the main contributor behind Gold slipping from $1222.to $1205 and the metal looks like it is commencing Friday under some bearish pressure. There was also a pullback in Silver with metal declining from $16.78 to $16.33. What happens today? There is a very low volume of economic data released from the United States and this might provide some opportunity for metals to bounce slightly. It should also not be ruled out that if the emergency Eurozone Finance Ministers meeting goes pear shaped, that traders might be inspired to look for safehavens.