US Dollar Expected To Reap Gains If FOMC Minutes Adopt Hawkish Tone

Economists and analysts see that the US dollar is trading narrowly mixed. They also believe that a hawkish tone in FOMC Minutes could push the dollar higher.

There are no major data releases scheduled for US session on Wednesday. However, the Fed releases the Feb 1 FOMC minutes.

The chances of the pace of policy tightening picking up again are low but a hawkish undertone to the minutes, more support for bigger hikes or a developing sense from policymakers that they view policy peaking at a slightly higher point, will boost expectations that the Fed cycle will extend beyond 5.25% into mid-year and lift the US dollar.