Come the Fed meetings around April, May, June next year, this may have an impact.
The dollar should remain firm. The ECB may not be as aggressive as the Fed and that should lead to dollar gains in 2006.
The dollar reacted to data strength initially, but for the euro there is buying interest around $1.2230.
The dollar is weaker initially across the board after the release of the minutes. On your first read through you get the indication they may not be as aggressive as some had been predicting.
The dollar is starting to show some gains as the report came in stronger than expected across the board; new orders, employment, prices paid.
The dollar is definitely swimming against the tide, trying to make further gains against the twin deficits.
Overall, the ISM number is definitely a strong figure, as well as the construction spending report, which is much higher than expected.
That really backed up the fact that strength is still expected in the economy, which means more rate hikes to keep inflation at bay, so that has supported the dollar this afternoon.
It was all one way. It was just a matter of momentum picking up after 8 a.m..
Even though the data has been inflationary and indicative of a stronger economy, comments from the Fed suggest they're going to wait and see.
