The US dollar has bled to the lowest levels of New York trading in the aftermath of the Fed minutes.
EUR/USD climbed above 1.1850. A second wave of US dollar weakness could hit on a break below 119.00 in USD/JPY (last at 119.07). Update: quickly down to 118.88.
The Fed retained Yellen’s optimism on the US economy in the minutes but that’s being overshadowed by worries about overseas economies, soft wage growth, low inflation and (especially) indications the Fed will be slow to continue rate hikes even if liftoff comes in June.
In terms of trading, however, don’t expect the effect of the minutes to last long. The market will soon focus on non-farm payrolls and China CPI data, both due Friday.
