US Dollar pressured ahead of FOMC minutes

Ahead of the FOMC minutes and the US opening bell, the US dollar is trading in the red. The Dollar Index recovers from Tuesday’s loss and trades back over 104.

The US Dollar Index (DXY) shows that the dollar is down and that it is once more on the verge of breaking below 104. Even if the US dollar was stronger early in the European trading session, pressure is mounting as a result of the EU imposing fresh restrictions on Chinese and Indian businesses that are allegedly providing Russia with supplies to manufacture and stock weapons.

In the meantime, US Fed President Barkin has put a dampener on expectations for another swift rate drop, stating that services inflation has not changed and must decline before the Fed can even consider cutting.


Regarding economic data, traders are getting ready for the Fed Minutes to be released later this evening. In conjunction with the Wall Street Journal story, it demonstrates how brittlely the market is currently pricing in every scenario conceivable about rate policies. Traders will be considerably more alert to any hints in the Minutes regarding the Fed’s potential to raise or not hike and whether to reduce during the summer or ahead of schedule.

On Friday, the European Union (EU) imposed further sanctions on Russia, targeting a number of Chinese and Indian businesses that are believed to be aiding Russia in its arms manufacturing.

There’s a slim chance that rates will increase in the next three months, according to a Marketwatch report from the Wall Street Journal.

This possibility appears in options linked to the Secured Overnight Financing Rate but not in US Chicago Mercantile Exchange Fed fund futures.