People are reassessing the U.S. economic outlook because they had thought the recovery was jobless. People are beginning to price in the chance of a rate hike by August.
The tone from the Bank of Canada has softened lately and upbeat data are needed to intensify rate hike expectations.
The bottom line is that the door is more open for a rate hike and the market is convinced we will have another rate hike.
It's too early to conclude it's the end of the dollar rally. Data in the U.S. should continue to be healthy and we could see rate expectations moving higher, supporting the dollar.
The minutes confirmed the current pricing of rate hikes in the market.
The impact on the euro from last week's rate hike is evaporating ... There's nothing to intensify rate hike expectations in the euro zone.
The current rate expectations are still supportive for the dollar. But now the market needs to be assured by upcoming economic data.