US dollar rises to two-month highs ahead of CPI
The U.S. dollar edged higher on Wednesday, taking in stride the release of minutes from the Federal Reserve's September meeting that showed a substantial majority of policymakers backed its outsized 50-basis point rate cut.
"The market has been building up to the minutes for a couple of days now, both the minutes and the inflation report. So, the dollar index has been moving up higher and clearly the tipping point was the strong U.S. jobs report," said Amo Sahota, executive director at Klarity FX in San Francisco.
Sahota said it looked like Fed Chair Jerome Powell had to convince more participants than originally thought who had supported only a quarter-point cut. The minutes said "a few others indicated they could have supported such a decision."
Only one, Fed Governor Michelle Bowman, actually dissented.
Dallas Federal Reserve Bank President Lorie Logan on Wednesday said she supported last month's outsized interest-rate cut but wants smaller reductions ahead, given "still-real" upside risks to inflation and "meaningful uncertainties" over the economic outlook.
Do not forget today also is the volatile days market because at 12:30 UTC, inflation rate and CPI data will be published. Usually at that time also the market can jump or huge correction based on the smart money/Big money want.
