The US dollar strengthened growth after the publication of Fed protocols

The dollar strengthened growth on Thursday after the release on Wednesday of the minutes of the last meeting of the US Federal Reserve. The dollar index on Wednesday reached 4.5-month highs, on Thursday – it exceeded them and tested the maximum marks for 8.5 months. The minutes indicated that Fed executives will assess the prospects for curtailing stimulus programs at next meetings, and the key level voiced by the regulator in the advance indication for curtailing bond purchases may be reached this year.

Fed executives on last month’s meeting made it clear that they are on track to tighten monetary policy later this year, despite continuing disagreements over the exact timing of curtailing incentives for the economy, which has grown faster than expected this year, writes DJ Newswires.

The launch of the curtailment of monthly purchases of US government bonds and mortgage bonds worth $120 billion may be announced in any of the three remaining meetings of the Fed this year. To heads it is also necessary to think about the rate of curtailment of purchases. During the previous program, which ended in 2014, the Fed cut purchases in equal shares for 10 months. Several Fed officials said they would prefer to accelerate this process, as the economy this time is more rapidly approaching targets.

The euro is on the verge of breaking new lows against major currencies. Its position remains precarious against the background of the prospect of a long monetary stimulus from the European Central Bank, writes Bloomberg.

Bank of America expects a significant increase in the dollar in the second half of the year, citing “historically exceptional” market and economic conditions. HSBC has changed its forecast for the dollar for this year and now expects the U.S. currency to strengthen against most major currencies rather than weaken. The bank refers to the peak in the growth dynamics of the global economy and the Fed’s move to normalize monetary policy as reasons for reconsidering their views.