USD correction may be nearing its bottom – ING

Today, it's all about the Fed minutes, as bulls hope to find signs that Chair Powell's hawkishness was conditional on a strong Consumer Price Index (CPI) reading.

Ready to scan the Fed minutes

“Today, all eyes are on the FOMC minutes. Expect another rally in risk assets should the minutes provide hints of conditionality of Powell’s post-meeting hawkishness to a prolonged stickiness in inflation readings. In the absence of such hints, there may not be much for risk bulls to cling on to, given that the November meeting was still a largely hawkish one and the post-meeting (and also post-CPI) Fedspeak has been rather cautious on a dovish pivot.”

“The Dollar has faced a new round of selling. We don’t exclude that this correction will run a little further, but we continue to expect a rather radical inversion in the bearish Dollar trend in December as the Fed remains broadly hawkish, energy prices rise again and the global economy slows.”