Forex Flash: Sell the USD on rallies – Danske Bank

The FOMC minutes are the main event on Wednesday and a potential carrier of fireworks in the European evening. The last minutes have hinted at the possibility of the Fed exiting from the ongoing QE programme sooner than previously estimated, triggering a wave of buying interest in the USD.

“We are likely to see some of the same concerns in the January minutes but the market reaction should be more muted as exit talks should not be a surprise this time around… Thus, if the dollar strengthens tonight, we would view it as a selling opportunity”, suggested C.Tuxen, Senior Analyst at Danske Bank.