The U.S. dollar is mostly flat overnight as snow descended on Washington.
The Bloomberg Dollar Spot Index stopped its four day decline ahead of the Federal Reserve’s meeting minutes set to be released this afternoon. The minutes are from the rather historic meeting in January where the central bank took a sharp dovish turn and dropped their promise for “some further gradual increases.” Traders will pour through the minutes for clues as to whether the central bank was bending to political pressure, a downgraded outlook for inflation or worries over the economy in general.
With little in the way of risk events ahead of the 2 p.m. minute release, expect the greenback to continue to trade in relatively tight ranges.
What to Watch Today…
- Fed Minutes at 2 p.m.
The complete economic calendar can be found here.
It’s a quiet news day when Australian wage data is atop of currency headlines. The Australian dollar slipped modesty after 4th quarter wage data missed estimates, coming in at -0.08. AUD/USD will continue to be subject to headline risk surrounding Chinese/US trade relations. Trade representatives from both countries are meeting in DC this week with the March 1st deadline for new tariffs rapidly approaching.
The Japanese yen fell overnight as global equity boards are awash in green this morning. But the yen’s fall can also be attributed to disappointing Japanese trade data which will increase speculation that the Bank of Japan may consider more stimuli later this year. Japanese exports fell in January with a notable fall in shipments to China. Total shipments declined 8.4% by value from a year earlier and registering a second consecutive monthly drop for the first time in nearly three years.
According to Bloomberg, “The outcome of U.S.-China trade talks and President Trump’s decision on auto tariffs are among the biggest risks to trade for Japan.”