The Minutes of Federal Open Market Committee(FOMC) have laid stress on the fact the monetary policy should help in bringing about a proportionate adaptation with the changes in the forex market. Instead of providing guidance as these were expected to enlighten, these confusing minutes has resulted in bringing a severe change in the prices of forex market. Eventually there is a fall of value of currencies. Particularly EUR/USD is under severe pressure and bearing the brunt of the current situation. Currently it is being traded at 1.1832. This value has suffered a noticeable downfall. While on the other hand, the greenback still continues to get support.
Minutes of FOMC:
The minutes of FOMC have also exposed the threat of second wave of COVID-19. With the increase in the number of victims and patients of COVID-19, the forex market is again going to suffer. Obviously a tighten state of the price of currencies is expected to be observed. Similarly businesses and households are going to lose the fiscal support. These minutes highlights that the greenback has a safe haven in these circumstances. The prices of metals are also shifting unexpectedly while the stock market of U.S is witnessing the rolling of the price movement. The minutes are weighing the stock market. The minutes are supporting DXY as DXY is enjoying a stable state at 92.94.
The Highlights of FOMC:
These minutes also reflect that FOMC is mainly concerned about the development and recovery of the economy of U.S.A. The minutes are giving reference to the notion that yield caps are not sufficient for economic recovery and they would maximum provide just humble and modest advantages in the recent circumstances. The risk sentiment has a great significance as these minutes have laid stress on risk factor. Thus these minutes expose the fact that more accommodation is needed and urgently required for the recovery of the U.S economy.