Forex Maket news Update 25 May 2017

Overnight, Federal Reserve officials supported a plan to reduce the Fed's $4.5 trillion balance sheet this year, 

while most Fed members said an increase in interest rates will be needed "soon", according to the FOMC minutes released on Wednesday.

• This weaker than expected hawkish tone was reflected in USD/JPY and Dollar Index selling, while US equities edged higher – S&P500 (+0.25%), DOW (+0.36%). The DAX and CAC 40 fell 0.1%. The FTSE 100 outperformed, rising 0.4%

• US Dollar index declined sharply after Fed minutes meeting. The minutes from the Federal Open Market committee showed it is comfortable to continue on its path of gradual increase in the federal funds rate. Market got slightly surprised as Fed outlined balance sheet normalization plan

• Oil gave back some of its recent gains, with WTI falling 0.4% to $51.25/bbl. The dollar was little changed at 111.635 yen, pushed away from a one-week high of 112.130 scaled the previous day.

• The euro, which went as low as $1.1168 overnight, was 0.2 percent higher at $1.1240, making its way back toward the 6-1/2-month peak of $1.1268 touched on Tuesday.

• The Canadian dollar stood near a one-month high against the greenback after the Bank of Canada gave a more upbeat assessment of the economy than some investors expected.