Softer dollar amid signals of less aggressive Fed countered worsening Covid situation and fresh lockdowns in China, leading to a mixed trend in commodities.
Mixed commentary by Fed officials clouded inflation and rate outlook and helped the dollar recover earlier in the week to near 108 levels from three-month lows of 105.34 touched in the prior week, only to revert back to below 106 after release of FOMC minutes.
In the minutes of November 1-2 FOMC meeting, a substantial majority of participants judged that a slowing in the pace of increase in the target range for the federal funds rate would soon be appropriate, as monetary policy approached a stance that was sufficiently restrictive to achieve the Committee's goals.
US Flash Composite PMI contracted for the fifth consecutive month in November as tighter financial conditions, rising cost of living and weaker demand slowed business activity. This hints towards a looming recession but aligns with Fed’s goal to bring down price pressures.