The US dollar depreciated on Wednesday versus most major pairs after the release of the Fed minutes.
The central bank published the notes from the Federal Open Market Committee (FOMC) meeting where plans for two more rate hikes are present but since that scenario has been fully priced into the dollar the fact that policy members see risks of trade disputes impacting the growth of the economy weighed down on the currency.
The EUR/USD rose 0.23 percent on Wednesday and has now advanced 1.40 percent since trading started this week.
The single currency is trading at 1.1597 after US President Trump’s campaign manager was found guilty of eight chargers on Tuesday escalating market concerns about the political turmoil in the White House. Trade disputes with the EU and China have boosted the US, before the comments from President Trump on the work of Fed Chair Jerome Powell put the greenback on the back foot.
Chair Powell will speak this Friday at the Economic Policy Symposium in Jackson Hole. The title of his speech is “Monetary Policy in a Changing Economy” which could bring some insight into the path of the Fed. Analysts see four more rate hikes before the Fed runs out of runway and looks instead to other alternatives to keep tightening. The central bank has already mentioned growing headwinds as trade concerns could have a deep impact on the growth of the US economy.
