Tuesday saw the release of Consumer inflation in the US, hitting a positive figure for the first time in three months (as expected). Leading up to Wednesday’s US Federal Reserve Meeting Minutes, there was an expectation of strong discussion around a December Interest Rate hike; however, the actual minutes showed divided opinion on this possibility within the Federal Reserve itself. The members appear keen to assess how Consumer inflation increases, allowing them to remain confident it will stay on target. This meant that the US Dollar weakened slightly against the majority of its peers, with stable weekly labour data on Thursday failing to have an impact.
We expect a quiet day for the dollar today, with Federal Reserve member Dudley speaking the only event of note. Dudley tends to be positive about the possibility of a short-term rate hike.