The dollar is growing steadily ignoring the hawkish tone of the fed
The dollar continues recovering, having received last night an additional momentum after the publication of minutes FOMC. In them, the fed reduced concerns about too low inflation, noting, however, that tax reform can lead to more drastic increases in rates than planned.
The markets are now in solidarity with the December FOMC projections for the three rate increases this year, and the mood fed again a little more hawkish than the market as a whole. This position controller has some pressure on the markets by expanding them to decrease immediately after the publication.
Asian Playground in the morning picked up careful attitude which spread to the currency market where the dollar index reached 90, and EURUSD is trading around 1.2275.
Today is expected the release of ECB meeting minutes, that could identify short term trend of the dollar. Optimism the ECB may deploy to the growth of not only common currency but also to encourage the entire market to a new wave of dollar sales. Caution controller Europe and indications that he would not rush with tapering, on the contrary, capable of quickly enough to send EURUSD to the area of the February lows at 1.2200.
These important publications for the Russian market can fall by the wayside today, as the expected upgrade of the sovereign ratings from Fitch and S&P. Their improvement is able to positively affect the mood of Russian players, allowing the ruble to reverse the trend of weakening due to the pressure of the dollar.
Yesterday the USD / RUB pair gained 20 cents to 56.76, reaching the highest level at the end of the day after the release of minutes from the FOMC. Ruble feels pretty confident. The dollar rose against the ruble by 0.6% over the last week, which is three times less than growth, which he demonstrated against a basket of six major world currencies.