How to Trade the FOMC Minutes

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Don't get carried away by a dollar rally on release of the FOMC minutes, this strategist says.

The Federal Reserve's March 13 meeting minuteshave been released, and officials' apparently waning enthusiasm for quantitative easing has sent the dollar aloft. But don't get too excited, says Todd Elmer, a currency strategist at Citigroup.

Elmer notes that the members of the Federal Open Market Committee overall, and thus the minutes could sound more hawkish than Fed Chairman Ben Bernanke does on his own. And he cautions that since the March meeting, a series of speeches by Bernanke helped drive the dollar - and interest rate expectations - lower.

All in all, Elmer wrote to clients before the minutes were released, "risk return in chasing any bout of USD strength upon the release is unattractive."

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