FOMC meeting minutes leave us no clearer on a definitive timescale for when “tapering“ could commence

The US dollar started the week slowly, as little influential data was released and investors maintained a tentative mind-set ahead of the minutes from the most recent Federal Open Market Committee meeting. As questions over tapering continued to be asked, these minutes were important in trying to ascertain a more concrete time frame for when this may start to be implemented; when it is we can surely expect the dollar to strengthen as the printing of money to buy bonds continually weighs down on the currency. However, the minutes still failed to deliver a clear sign as to exactly when the process would be dialled back, although it did show wide spread support within the committee for chairman Ben Bernanke’s set time frame. General consensus still points to September for the process to start, while in the meantime any economic data from the country is sure to be closely scrutinised and have further significance should it support the implementation of tapering. Yesterday saw unemployment claims come in at a five year low and the housing price index ahead of predictions, again further signs of a healthy economy and what would appear to be encouragement for the Federal Reserve to start tapering. The only data left for today is that of new homes sales figures; however, the three day Jackson Hole Symposium started last night and any comments from influential officials could cause significant volatility. Call your trader today for the latest US dollar rates, as an important week for the currency comes to a close.