The Fed cools its tightening, the dollar remains strong

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What you need to take care of on Thursday, August 18:

The U.S. Dollar ended Wednesday higher against most of its major rivals on Wednesday, despite a short-term pullback following the release of the FOMC Meeting Minutes.

The greenback suffered a short-lived setback after the release of the Federal Reserve document, which showed that US policymakers unanimously agreed to raise rates by 75 basis points, seeing a slowdown in the pace of increases at one point. given. He also read that many Fed officials saw the danger that the Fed could tighten more than necessary. In addition, some participants said the policy rate should reach a level “tight enough” to control inflation and stay there “for some time.”

EUR/USD managed to post modest intraday gains and settled around 1.0180, although local GDP was revised lower. GBP/USD, on the other hand, remained under pressure and ended the day around 1.2050.

Commodity currencies were among the weakest with AUD/USD now trading around 0.9630 and USD/CAD just above 1.2900. NZD/USD is down to 0.6270 as the New Zealand dollar retained its strength despite RBNZ Governor Orr saying he does not see a 75 basis point rate hike and raised the main rate by 50 basis points.

The greenback posted modest gains against safe-haven currencies, with USD/CHF trading around 0.9510 and USD/JPY at 135.00.

Gold is trading at $1,765 per troy ounce, extending its weekly slide, while crude oil prices spent the day consolidating losses. WTI changes hands at $87.60 a barrel.

Australian employment data will be presented next.

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