Dollar Holding Steady After FOMC Minutes, Powell’s Speech in Focus Next
Arslan Butt • 1 min read
The US dollar is trading stronger early on Thursday following the release of the FOMC meeting minutes during the previous session. At the time of writing, the US dollar index is trading at around 98.31, climbing slightly higher.
The minutes from the July meeting of the Federal Reserve released on Wednesday reveal that policymakers were divided about cutting interest rates by 0.25% last month. “Several” members wanted to keep interest rates constant while a “couple” wanted to cut interest rates by 0.5%.
The dollar has received strong bids over traders’ optimism that the Fed has sounded less dovish than expected so far. However, all eyes now shift to Fed Chair Powell’s speech at the Jackson Hole symposium due tomorrow.
Powell’s comments will be closely watched for additional clues on what to expect from the Fed going forward in terms of further rate cuts or easing measures. Traders can expect currencies to continue trading in tight ranges over the lack of volatility and significant updates in the summer month.