Analysts at Danske Bank point out that the USD saw a muted reaction after the latest release of Fed Minutes, but stays on a weak footing in response to Powell’s soft comments earlier in the week.
Key Quotes
“FX markets will continue to digest the Fed’s signal of data dependency increasing as rates get closer to neutral, but focus is also turning to US-China trade talks this weekend – if the market smells a ceasefire on tariffs, it should weigh on USD. While waiting for this, EUR/USD is also eager to see whether eurozone inflation picks up in the October figures this morning.”
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