Dollar Moves Off Its 7 Month High; Fed Minutes In Focus

aerThe U.S. dollar is trading slightly lower against the euro on Wednesday morning after reaching a 7 month high yesterday following better than expected CPI  inflation data for October and ahead of the release of  Fed minutes later this afternoon.

The Fed minutes is released today at 2:00 EST and will be based on the last Fed’s meeting from October 28th when Fed committee members held back against raising interest rates after viewing 2 months of weak employment figures from August and September combined with weak inflation data.

Since the October 28th Fed meeting, the jobs report for October was released on November 7th and showed the best monthly gain in 2015 with 271,000 non-farm payroll jobs added to the U.S. economy.

Although retail sales for October came in weaker than expected last week, October PPI inflation was below forecasts, and October industrial production declined 0.2 percent, the Fed Reserve still has an opening to raise interest rates after the robust jobs report in October and yesterday’s strong CPI inflation data.

Next week the Fed’s preferred inflation gauge, Core CPI, will be reported for October on Wednesday.

This inflation report combined with the November jobs report that is released on December 4th will give economists some more added data to weigh before their next December policy meeting when they will make a decision about raising interest rates.

Also, next Tuesday the 2nd GDP estimate of Q3 will be reported and provide economists with another snapshot about the health of the U.S. economy.

-Johnathan Schweitzer

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