USD looks to FOMC minutes for direction – Danske Bank

Sverre Holbek, Senior Analyst at Danske Bank, assessed the upcoming events around the greenback.

Key Quotes

“Focus in the majors will be on the FOMC minutes from the March meeting where the Fed hiked and steepened the ‘rate path’ slightly; risks are tilted towards a third hike, but just as interesting for USD forwards is whether the FOMC discussed the FRA-OIS widening, as this could be a first sign that the Fed is taking notice of the USD liquidity situation; that said, last week Powell dismissed balance-sheet reduction being an issue”.