Currency Note US Dollar

FOMC meeting minutes leave us no clearer on when “tapering “ could commence

By Ricky Bean August 22nd, 2013

The US dollar strengthened yesterday in anticipation of the release of the latest FOMC meeting minutes. Speculation in anticipation of the release of these saw the currency extend gains against the majority of its main partners and also on the back of existing homes sales data, which showed that this measure had increased last month to the fastest pace since November 2009. This was yet another positive sign to add to the ever growing list implying the increasing strength and recovery of the US economy. Whilst almost all members of the FOMC agreed that it was appropriate not to alter the quantitative easing program in July, there was no clarity with regards to when the tapering should commence as some members urged for patience whilst others pushed for the tapering to begin sooner rather than later. That being said, there was a general acceptance regarding the timeline laid out by the Chairman of the Federal Reserve with the program ending around the middle of next year. The immediate reaction in the market following the release was fairly muted, however the US dollar has since strengthened. Get in touch with your trader now for an up to the minute price for the US dollar as the reaction to yesterday’s important events continues.