News & Analysis

FX Analysis – USD boosted by FOMC minutes

23 May 2024 By Lachlan Meakin


Mays FOMC minutes released on Wednesday surprised on the hawkish side, bolstering USD and seeing the Dollar Index (DXY) retake the psychological 105 level. While the general view of FOMC members was that policy was “well positioned”, there were a few more than expected who were open to more hikes if needed, questioning whether policy was restrictive enough.

Hot March inflation and jobs figures seemingly lingering in the minds of some of the kore hawkish members of the FOMC despite some encouraging April data. Hawks Neel Kashkari and Chris Waller being the main voices regarding caution from the Fed in cutting too early , though it does seem that the general FOMC sentiment has turned generally less hawkish since the May meeting so any pop in the USD may be short lived.

In today’s economic releases for FX traders PMIs are released in the US and eurozone. Given indications from recent data, there is the possibility for eurozone figures to paint a relatively more encouraging picture on inflation than in the US, also Nvidia’s solid results will likely have some positive impact on risk sentiment today.


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