Source: Forex News
It has not been the best year of the dollar, political uncertainty and scandal, multiple Trump Administration resignations and dismals, more recently the friction between the U.S./N. Korea and the drop in Non-Farm Payroll have seen the dollar swing wildly on the markets. With the FOMC minutes release just hours away (scheduled at 18.00 GMT) it seems that markets are losing even more confidence in the all mighty green-back – bringing its price down to a 12-year low (at 0.8443 against the EUR at the time of writing this article).
Although the factors are multitudinous – the most significant factor fueling this effect is likely markets’ apprehension that the Trump administration will be able to push through their most recent tax reform. Markets will likely stay risk-off USD until the outcome of the FOMC minutes, especially considering that the NFP came in -33K under expectations, so it seems that investors are bracing for another surprise. This risk-off sentiment seems to be reinforced by a slight spike in the price of safe havens such as gold and JPY.
Investors will be on the lookout not only for some potential dollar-positive news from the FOMC but also anything hinting towards a December rate hike.