The U.S. dollar was comforted by the Fed’s October statement, viewed by many as more hawkish than dovish. The broad implication in the minds of many traders is that the Fed is likely to raise interest rates sooner than was thought ahead of the meeting.
Before the meeting investors had assumed that, on account of a benign inflationary environment, the Fed might even make reference to continued or future policy accommodation in light of the financial meltdown during the first two weeks of October. Rather than dwelling on the short-lived asset price dip, the Fed instead focused on the broader, multi-year improvement in the labor market as it closed the book on QE...............................................Full Article: Source
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