The U.S dollar dropped on Wednesday after minutes from the Federal Reserve’s July meeting showed a mixed picture with a tends to be more hawkish, the meeting focused on 2 points:
1- A near-term rate hike:
Fed policymakers were divided on the need to raise rates in the near future with unclear justification.
2- US economic outlook:
The FOMC members were generally optimistic about the U.S. economic outlook and labor market, but several members said: a slowdown in the future pace of hiring would argue against a near-term hike.
The Fed’s statement missed a clear and a direct hawkish language, despite it was upbeat about the U.S. economic outlook and labor market, but that was not enough because it was cloudy about the near-term rate hike.
This non-clear tone caused fears and concerns and made investors and market players are not sure about what will really happen in the near future, which resulted in the sale of US dollar?!!!
My point of view : The Fed opens doors for limited losses for the USD in the near future…