Ahead of the FOMC meeting minutes, the dollar index and related pairs strengthen. Fed members hawkish comments and April retail sales data strengthen the index last week.
“I support a gradual adjustment of short-term interest rates toward a more normal level, but I view the current level as too low for today’s economic conditions,” George said. “The economy is at or near full employment, and inflation is close to the FOMC’s target of 2 percent, yet short-term interest rates remain near historic lows.” reported by Bullion desk.
Post April retail sales data, the dollar rose to two-weeks high across the board. The better retail sales data might push the FOMC members to rethink the rise of interest rates during this year.
“IFlow and quantization strategy at BNY Mellon in charge Samarjit Shankar said that the current positive as to why the Fed should consider continuing efforts to normalize interest rate debate, retail sales report may provide new justifications for the hawkish camp, the dollar may continue from the market interest rates expected to be supported reported by FX168 Financial Network.
Wells Fargo economist John Silvia, led the team, said that the FOMC will not raise interest rates in June, maybe later in the December rate hike; if in September prior to action will require a more robust US economic data to a large extent, and Fed officials change argument; FOMC is expected to raise interest rates three times in 2017, expected to take action four times before.
The dollar index rejected at 50Dsma on Friday’s session rose eight sessions in nine. Earlier the price made a triple top at 95.20 levels. The reversal resumes if the price settles above 95.30 towards 95.75, 96.00 and 96.50 levels.
The weekly resistance seems between 96.20 and 96.60 levels.
Alternatively, 20Dsma finds at 94.00 and swing low support finds at 93.60. The current bullish view erases if the price fell below 93.60 levels .