Now: Dollar Unable to Gain Strength
US Dollar tried to recover some losses from the previous day but failed to continue its momentum during the US trading hours just before the released of the FOMC meeting minutes. From the minutes released by the FOMC, all members supported the reduction of the balance sheets in which will be consider a bit more hawkish than the current policy.
The participants of the meeting agreed on the need of the rate hike of 50-basis points for the meeting but only a few think that they will need to do multiple time of rate hike in the next few meetings. This statement has low down the probability of rate hike in September this year.
On geopolitics, the tension between US and China increasing as the US President, Joe Biden, said that US will give help militarily to Taiwan in the event of China invasion thus sour the relationship between the 2 superpowers. This situation also become a concern for economy as it will definitely impede the current economy growth.
26 May 2022