NEW YORK (TheStreet) - The market's focus this week was on interest rates, which affected assets across the board from the U.S. dollar to gold. Oil, however, is still more influenced by geopolitical risks.
Minutes from the Federal Reserve's last Open Market Committee meeting, released on Wednesday, showed that although rates have spiked higher, the Fed has done ittle to push the market in the opposite direction.
That could be a signal that Fed members no longer desire to hedge their policy by taking one stance during official meetings and then quickly redirecting markets in the coming days. Analysts believe that indicates a September start date to slow down quantitative easing.
The first chart below is of the U.S dollar futures contract. The dollar had disregarded increasing rates over the past few months as investors sold bonds and the dollar on policy uncertainty. As the Fed's policy change has become more probable, investors have turned back to the fundamentals and resumed bidding dollars higher alongside higher rates.
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