The market wants a sign that the Federal Reserve will remove the pledge to keep rates low for a “considerable time” but the minutes showed that support for a more hawkish stance is limited.

The dollar dropped at least a half-cent right across the board after the release. The headlines show a Fed that’s worried about global growth and low inflation, not an economy that’s heating up.

Carnage for cable shorts after the FOMC minutes

Carnage for cable shorts after the FOMC minutes

The market bought dollars heavily in the lead-up to the minutes but was caught badly offside as positions were flushed.

It’s not just that “considerable time” is more-likely to remain after the end of QE in Oct (although the statement will need to be altered somewhat), it’s that signs are growth that core members of the Fed (like Dudley) are in no rush to hike rates.

In addition, the wave of dollar strength and oil weakness threaten to keep a lid on inflation.

How the dollar bulls are felling:

aaannd its gone

h/t @delangedotcom