FOREX
The US dollar is on the back foot this morning, changing direction after a winning streak. On Tuesday the greenback was supported by better-than-expected US retail sales numbers for July. Investors took the positive figures as a confirmation of the resilience of the American economy, whose vitality continues to surprise, despite inflation and tighter credit conditions. This latest development fed into the ongoing debate over whether the Federal Reserve will increase interest rates again when it meets in September, or pause and perhaps even announce the end of the current hiking cycle. Today, dollar traders are in waiting mode, ahead of the release of the latest Fed minutes, which may provide further insight into what the FOMC members really are thinking. Given the background, this morning’s dollar losses may easily be reversed if the minutes reinforce the idea that another rate hike is a real possibility.
Ricardo Evangelista – Senior Analyst, ActivTrades
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