Last night’s release of the minutes from the most recent decision to hike interest rates by 0.25% provided mixed information. Most participants favoured a 25bps increase but almost all agreed that interest rates will have to continue to rise. The committee appears less worried about inflation moving lower towards the target and instead are concerned about the issue of the US debt limit and any partisan brinkmanship that may ultimately impact financial markets and the US economy.
In the wake of the minutes the greenback proceeded to pick up some buyers while sellers continued to dominate the equity market space. As Thursday’s session commences the buck has given back some of its gains.
Data on today’s economic calendar includes eurozone inflation numbers and US-revised GDP figures for Q4 2022.
Have a great day.
8:13am, February 23rd 2023
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