The main focus today is the FOMC minutes. The last time the Federal Reserve met, they extended Operation Twist, cut their economic projections and admitted they were overly optimistic. Today we will be looking to see if this pessimism was broadly shared or only the sentiment of a few FOMC members - the greater the consensus, the greater the pressure on the U.S. dollar.
However with most investors anticipating dovish comments, if the Fed sounds even the slight bit wishy-washy about QE3, the dollar could be squeezed higher.
Regards,
Kathy Lien
Managing Director
BK Asset Management
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