Reply To: Traders Market Weekly: APR 3-9 — Yield Inversion & Inflation concerns

Helmholtz Watson

Dollar jumps after FOMC minutes highlight the appetite for 50 basis point rate hikes
‘Many’ policymakers wanted to step harder on the brakes

The US dollar initially fell but quickly reversed course and has now surged to the best levels of the day on indications the FOMC won’t hesitate to deliver one or more half-point rate hikes.

The commodity currencies are bearing the brunt of the US dollar move as US equities tumble.

The S&P 500 is down 1.4% and the Nasdaq down 2.7%, both sliding further after the report’s release.

EUR/USD is down 20 pips to 1.0881 on the day with the entire fall coming after the minutes.