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During the session on Wednesday, we get the FOMC Meeting Minutes, which comes out at 2 o’clock New York time. With this being the case, could be a fairly quiet session leading up to that announcement but with the way that the Federal Reserve is been acting lately, it’s likely that the statement will be somewhat dovish. If that’s the case, it should work against the US dollar, as interest-rate hikes will be less likely. With that being the case, we could see several things happening during the day.
1 – Typically, a dovish Federal Reserve means higher gold prices. If that’s the case, precious metals might be the place to be today. Call buyers will push these markets higher, and continue to bet on a weaker US dollar. Also, you have to keep in mind that several other markets could be greatly influenced by a softer US dollar, not the least of which would be the Euro, as it is considered to be the “anti-dollar.”
2 – We also get Crude Oil Inventories numbers coming out during the day, and that of course will have a massive effect on the WTI Crude Oil market. Lately, this market has been rolling over so it looks as if the put buyers have started to assert their will. If we get a high inventory number, that could very well give them even more strength, and drive the price of the commodity lower, even while a soft in US dollar could push other commodities higher.
