Watch the USD closely now as the Fed starts to shift pace
Two neutral members have shifted
After the last FOMC minutes last night we now know that some members prefer a faster taper. Bearing in mind that these minutes came out before the high CPI print it seems reasonable these pressures for a faster taper would have grown.
Two neutral FOMC members tilt more hawkish
Daly & Clarida are now leaning more towards faster tapering.
If core board members show this shift too then watch out for more USD strength. However, do remember that seasonally this is a very weak time of year for the USD. So, mixed forces out there folks. Also, it can be argued that with 3 rate hikes priced and a faster taper becoming a consensus view the move higher in yields and the USD looks overdone.