Edited minutes of the July 28-29 FOMC meeting are due out at 18:00 GMT. Markets are looking for indications of long-term economic view while any mention of yield curve control is negative for the dollar, Joseph Trevisani, an analyst at FXStreet, reports.
Key quotes
“Markets are chiefly concerned about the governors’ forward view. Employment and economic growth are the Fed’s main concerns, followed at a discrete rhetorical distance by inflation. Pessimistic, optimistic or neutral whatever light the minutes can shed on the FOMC’s future sight will be taken as pronouncements by the trading markets.”
“Yield curve control, or as we call it, Y2C, was not mentioned in the FOMC statement or by Chairman Powell in his prepared statement or in the news conference. If there is any serious consideration it will show here. If the topic is more than academic it will be a sign that the governors are more worried than they have let on and will not bode well for the dollar.”
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