On Thursday, the Dollar tumbled and hit a two-month low of 111.07 against the Yen after the release of the minutes of the Federal’s Reserve October 31-November 1 policy meeting. Fed policymakers expect that interest rates will have to be raised in the “near term”, reinforcing market expectations that the Fed will raise interest rates in December 2017. However, the minutes stressed concern among some of the members over the inflation outlook, with the emphasis placed on economic data in determining the timing of future rate rises.
The Euro edged up, nearing a one-month high of $1.1862 set last week and may get another boost, as a key meeting between German President Steinmeier and Social Democrats leader Schulz was due yesterday afternoon. Schilz endorsed that his party has responsibilities and that he was sure a “good solution” could be found after the collapse of German coalition talks involving other parties.
In the meantime, Oil held near a two-year high as US Crude inventories dropped, adding to optimism OPEC’s output curbs are working as the group prepares to meet and discuss extending its reduction beyond March. US Crude inventories declined to about 457.1 million barrels in the week ended November 17. Meanwhile, the shutdown of the 590,000 bpd Keystone pipeline, one of the largest crude pipelines from Canada to the US, also supported Oil prices.