Fed steers the market dollar-ward

Last night the Federal Reserve's meeting minutes indicated a decidedly hawkish stance. What does hawkish mean? Well, it's contrasted with the term 'dovish', so intuitively you get the idea that it means they are more positive about economic growth and likely to take a more aggressive approach to monetary policy. QE ended, as expected, and interest rates are to remain low for a "considerable time". The notable change was an improved outlook on the US labour market and no reference to the limping Eurozone and Chinese economies. Subsequently the USD/ZAR pair is looking a bit worse for wear this morning, although EUR/ZAR and GBP/ZAR are still priced about the same as yesterday. Today's data risk is marginally more pronounced than yesterday but the most important fact is that we are closer to Friday than Monday!
 

Commentary by Danie Strijdom