It seems like market speculation regarding the Federal Reserve’s tightening cycle may have been right. The latest FOMC Minutes signaled that the US central bank could look to slow the pace of rate hikes next month.
The minutes showed that a number of Fed officials were open to the idea of slowing rate hikes soon, and that this would also allow the FOMC to better assess progress. However, it also bolstered comments made by Chair Powell at the beginning of the month which stated that the ultimate level of rates is likely to be higher than previously anticipated.
The FOMC Minutes added to the recent selling pressure on the greenback, with the US Dollar Index (DXY) breaking lower out of an ascending wedge. So, does this mean the USD’s tremendous uptrend is officially coming to an end?
Check out this article for a deeper insight into the Fed and how the FX market may react: