FOMC / ECB minutes reviewed - ANZ

Ross J Burland FXStreet

Analysts at ANZ noted that the US FOMC minutes were out yesterday, and the ECB minutes overnight.

Key Quotes:

"The Fed minutes were interpreted as more dovish than expected, with “some” participants expressing concern about inflation not persisting. The market appeared to discount the “some” qualifier, with US yields and the USD coming under pressure, though a December hike remains a done deal as far as market pricing is concerned."

"The ECB minutes overnight showed the majority on the governing council believe it is appropriate to proceed very gradually with forward guidance in relation to QE, but that opposition is rising to extending the program: “Some concerns were also expressed that the open-ended nature of the asset purchase programme might generate expectations of further extensions,” while others felt “an end date was... well justified in anticipation of further progress towards a sustained adjustment in the path of inflation on the basis of the better than expected growth momentum, diminishing risks and continued favourable financing conditions”. Europe is enjoying its strongest growth since 2011, and US growth is accelerating. But the missing ingredient remains inflation."

Author

Ross J Burland

FXStreet

Ross J Burland, born in England, UK, is a sportsman at heart. He played Rugby and Judo for his county, Kent and the South East of England Rugby team.

EUR/USD trims gains, hovers around 1.1900 post-US data

EUR/USD trades slightly on the back foot around the 1.1900 region in a context dominated by the resurgence of some buying interest around the US Dollar on turnaround Tuesday. Looking at the US docket, Retail Sales disappointed expectations in December, while the ADP 4-Week Average came in at 6.5K.

GBP/USD comes under pressure near 1.3680

The better tone in the Greenback hurts the risk-linked complex on Tuesday, prompting GBP/USD to set aside two consecutive days of gains and trade slightly on the defensive below the 1.3700 mark. Investors, in the meantime, keep their attention on key UK data due later in the week.

Gold loses some traction, still above $5,000

Gold faces some selling pressure on Tuesday, surrendering part of its recent two-day advance although managing to keep the trade above the $5,000 mark per troy ounce. The daily pullback in the precious metal comes in response to the modest rebound in the US Dollar, while declining US Treasury yields across the curve seem to limit the downside.

XRP holds $1.40 amid ETF inflows and stable derivatives market

Ripple trades under pressure, with immediate support at $1.40 holding at the time of writing on Tuesday. A recovery attempt from last week’s sell-off to $1.12 stalled at $1.54 on Friday, leading to limited price action between the current support and the resistance.

Dollar drops and stocks rally: The week of reckoning for US economic data

Following a sizeable move lower in US technology Stocks last week, we have witnessed a meaningful recovery unfold. The USD Index is in a concerning position; the monthly price continues to hold the south channel support.