The FOMC minutes are released on 11 April next week and the FOMC market projections moved towards a more hawkish position on their economic and rates outlook, explains Greg Gibbs, Analyst at Amplifying Global FX Capital.
“The market was quickly distracting by tariff announcements after the release of the FOMC decisions on 21 March and paid these hawkish elements little attention.”
“The risk is that the minutes give these hawkish elements a second chance to influence the market, particularly if matched by a higher CPI releases earlier on the same day.”
“A traditional reaction to higher inflation and a more hawkish tone of FOMC minutes should be higher US bond yields and a stronger USD. And we see this as a significant risk. However, with the potential for a fallout to jittery asset markets, it is harder to be sure how the FX and bond markets will react. We may start to see weaker EM currencies and a stronger JPY if fears of faster Fed rate hikes plays poorly for global equity markets.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.