A marked decline in the US Dollar (USD) caused the USD Index (DXY) to revisit the 105.00 neighbourhood amidst the ongoing multi-session bearish move in the currency.
EUR/USD picked up extra pace and surpassed 1.0800. The FOMC Minutes said rate hikes are on the table if inflation increases. Markets will now shift their attention to Friday’s NFP. A marked decline in the US Dollar caused the USD Index to revisit the 105.00 neighbourhood amidst the ongoing multi-session bearish move in the currency. This strong downtick in the Greenback also kept the bid bias around EUR/USD well in place, lifting spot back above the key 1.
Furthermore, some participants emphasised the significance of patience before considering rate reduction, while others noted the potential need to hike rates again if inflation recovered. In addition to leaving interest rates constant, officials during the June meeting postponed the expected start of rate decreases. On this, new projections indicated that Fed officials, at the median, predicted only one quarter-point rate decrease this year vs. three cuts expected at the March 19-20 gathering.
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