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Dollar watch intensifies as Fed minutes seen amid rate uncertainty

Weaker US labor and inflation data have lowered expectations for a year end rate hike, leaving traders to parse the latest Fed minutes for clues.

Reported · Written up by our desk · Major Pairs

FXStreet highlights Commerzbank’s Antje Praefcke expectation that investors will closely scrutinize the latest Fed minutes for signals about how near policymakers may be to another rate hike after disappointing US labor and inflation prints.

Praefcke said any repricing of a September rate hike could offer some support for the US Dollar, but she does not expect a major change in overall Fed rate expectations or sharp Dollar moves.

She added that, given the lack of clear signals in post-meeting communications, the market may look to the minutes to better understand discussions among FOMC members.

The commentary also notes that after the late July Fed meeting, the labor market and inflation data came in weaker than expected, which has left the market no longer fully pricing an interest rate hike by year end.

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