Fed minutes show no consensus on taper timing

HEADLINES

 

 

• U.S. dollar dips from 4-1/2-month high after Fed minutes
• Pound-Australian Dollar Breakout Pressure Builds
• Oil slides as COVID-19 surge, firmer dollar overshadow U.S. crude drawdown
• Gold futures settle lower, but move up after Fed minutes
• S&P 500, Dow edge lower ahead of Fed minutes
• Crypto Made the Agenda at Last Month’s Fed Meeting
• EUR/USD: Risks are tilted towards more dollar upside – Danske Bank

 

 

FOREX

 

 

U.S. dollar dips from 4-1/2-month high after Fed minutes

 

The dollar slipped from 4-1/2-month highs to trade little changed on Wednesday after minutes of last month's Federal Reserve meeting suggested there was no consensus about the timing of a tapering of its asset purchases under the U.S. central bank's quantitative easing program.

 

Pound-Australian Dollar Breakout Pressure Builds

 

Sterling has been trading throughout August in a range spanning the gap between roughly 1.8800 and 1.8938 against the Australian Dollar but has attempted this week to break out to new highs after the antipodean unit fell to new lows against the greenback, which are threatening to keep GBP/AUD elevated near or above that range ceiling for a while yet.

The Aussie has ailed further in its own right since Tuesday when minutes of the Reserve Bank of Australia's August meeting confirmed here's a lingering risk of the bank scrapping its plans to reduce the amount of government bonds bought under its quantitative easing programme each week from September.

 

 

COMMODITIES

 

 

Oil slides as COVID-19 surge, firmer dollar overshadow U.S. crude drawdown

 

Oil prices fell about 1% on Wednesday after four straight days of declines, as investors remain worried about the outlook for fuel demand as COVID-19 cases surge worldwide and on rising strength in the U.S. dollar.

Oil markets have experienced several days of weakness due to the rise in infections caused by the Delta variant of the coronavirus both in the United States and worldwide. Several countries have re-introduced travel restrictions and air traffic has softened in recent weeks.

 

Gold futures settle lower, but move up after Fed minutes

 

Gold futures settled lower on Wednesday, then moved up after minutes from the Federal Reserve’s late-July meeting suggest the central bank’s rollback of crisis-era accommodations could begin later this year. Most of the top Fed officials said last month that they thought it would be appropriate to start reducing the pace of its asset purchases this year, according to minutes of their policy meeting released on Wednesday.

 

 

STOCKS

 

 

Wall Street slides after Fed minutes show split over jobs, taper

 

Wall Street’s main indexes dropped on Wednesday after the release of minutes from the Federal Reserve’s policy meeting last month showed officials felt the employment benchmark for decreasing support for the economy “could be reached this year. ”Most S&P 500 sectors ended lower, with energy and consumer staples among the weakest performers.

 

 

CRYPTO

 

 

Crypto Made the Agenda at Last Month’s Fed Meeting

 

Top Federal Reserve officials are so concerned about the potential danger posed by cryptocurrencies to the financial system that they discussed it during a seminal monthly closed-door meeting in July.

“Some participants cited various potential risks to financial stability including the risks associated with expanded use of cryptocurrencies,” according to minutes of the July 27-28 meeting of the Federal Open Market Committee (FOMC).

 

 

ANALYSIS

 

 

EUR/USD: Risks are tilted towards more dollar upside – Danske Bank

 

“We keep our current profile largely unchanged, in favour of a stronger dollar over the coming quarters. We expect to see lower PMIs, a further move towards tightening global liquidity conditions, peak inflation expectations and a strong US jobs recovery and for these factors to support the dollar over coming quarters. In our view, risks to the forecast are tilted towards a stronger-than-expected dollar.”

 

 

CHART

 

 

Brent crude oil – Daily Candlesticks

Source: GKFX Prime Metatrader 4

Brent crude oil is testing major support at 67.50. The break below the rising trendline and 100 DMA suggest a greater chance of a break down. - Prepared by Trading Writers*

 

 

CALENDAR

 

 

*Times in GMT

Source: FX Street Economic Calendar

 

SOURCE

https://www.fxstreet.com/economic-calendar
https://www.poundsterlinglive.com/aud/15826-pound-to-australian-dollar-breakout-pressure-builds
https://www.investing.com/news/commodities-news/oil-edges-lower-as-spread-of-delta-variant-clouds-prospects-for-demand-2592751
https://www.marketwatch.com/story/gold-futures-edge-up-with-fed-minutes-on-deck-11629291518
https://www.reuters.com/article/usa-stocks/us-stocks-wall-street-slides-after-fed-minutes-show-split-over-jobs-taper-idUSL1N2PP2IT
https://www.reuters.com/world/middle-east/dollar-settles-near-4-12-month-highs-risk-appetite-cools-2021-08-18/
https://www.coindesk.com/crypto-made-the-agenda-at-last-months-fed-meeting