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USD Erases Gains after FED Minutes

The anticipated FED minutes were released today, and has caused a bearish reaction to the USD.
The main take away from the meeting, was as follows
Most participants anticipated that, based on their assessment of the current economic situation and their outlook for economic activity, the labor market, and inflation, these condiitions could well be met by the time of the next meeting.

Essentially, confirming the rate hike. Sounds quite good for the USD
So why the sell off? This is the essence of …
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Yellen's Welcome Speech - No "Heads Up"

The USD Bulls may have been anticipating today, as a catalyst to buy USD.
However, the fundamentals gave them no reason to do so. First up was Unemployment Claims, which came in at a slight miss (276 vs 270) & then Yellen's welcome speech
There may have been some anticipation that Yellen would provide further confirmation that there would be a December rate hike, or acknowledge that the data has been coming in well. The lack of such may have been the catalyst for a spike down in the US Dollar as
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NFP Numbers contribute to divergent monetary policy outlook

The numbers coming out of the United States were nothing short of fantastic.
Unlike any previous release, dynamics have changed in the markets.
For a large part of the week, the US Dollar was receiving a strong bid. There was some contributing factors such as negative data out of NZD and GBP, and the markets still considering the negative view point of the EURO where the ECB is seriously considering further QE..
The negative outlooks on several economies, combined with positive data out of the U
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After the Fed - What's Next?

Last week's Fed statement left the market with appetite to buy the USD. Specifically it is this part of the statement that led a strong conviction to the markets that they have not closed doors to a Dec Rate hike .
In determining whether it will be appropriate to raise the target range at its next meeting, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation

What stood out from the statement was the specific referenc…
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Strong CPI Data - USD Strength or time to Fade?

Month over Month Core CPI came in at 0.3% versus a forecast of 0.2%. And has caused a boost for the USD in early New York Trading. CPI is an important event from the Inflation data set, as current inflation levels are too low, an issue central bankers are facing globally.
So can this spur new buying into the USD? Is the downtrend finally over and time to start buying again?
Perhaps not the case. Previously this week we saw some mixed reaction off the release of the FOMC minutes. Headlines were s…
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