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Dollar Index Soars After FOMC Minutes

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The FOMC minutes released this Wednesday, its central piece of information being that interest rate was reduced 25 bps. Federal Reserve members said that rate cut was a “recalibration” that responds to the changing market conditions.

FOMC members continue seeing strong conditions in the labour market. They advise signals of deceleration in economic activity, specifically in personal consumption expenditures (PCE). The first half of the year, the PCE increased at a moderate rate supported by the motor sector.

Participants commented that the elevated level of non-financial corporative debt and leveraged loans. This level could represent a risk for future economic perspectives.

The bullish bias remains

This week, the Greenback moves slightly bullish, advancing 0.13%. The price action shows DXY moving in a range bounded by 98.48 and 97.95. Volatility likely will come triggered by the Jackson Hole Economic Symposium, scheduled for this Friday 23 and Saturday 24.


We maintain our principal long-term vision commented on August 19 (read more).

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