Minutes of the December FOMC meeting will be a major focus today. Back then, Fed decided to speed up tapering and end it in March instead of June. Also, the new projections saw three rate hikes this year. The markets would like to see more in-depth information an related discussion, and hints on the timing of the first hike. Currently, Fed fund futures are already pricing in nearly 60% chance that federal funds rate will be raised to 0.25-0.50% and above in March.
Dollar index is staying well in range of 95.51/96.93, much reflecting the movements in EUR/USD. With 95.51 support intact, further rally is expected in DXY, and an upside breakout could come as soon as a reaction to non-farm payroll report this week. A set of strong job numbers could easily push DXY through 61.8% retracement of 102.99 to 82.0 at 97.72. In the case, 100 handle would be within reach very soon.
