U.S Dollar Bulls Await Minutes From U.S Federal Reserve

At the time of drafting this report, the U.S dollar Index used primarily for tracking the greenback’s strength against a basket of six major currencies traded around 92.50 index points.

The greenback earlier recorded some buying pressures on Tuesday with growing geopolitical uncertainty, a slightly poor ISM non-manufacturing reading thus prompted a bout of risk aversion.

Bullish sentiments on the greenback were however capped with the 10 years Treasury yields dropping to their lowest levels since February.

The 10-year yield lost as much as 8 basis points to trade under 1.336%. Global investors are fast becoming edgy with the 10-year dropping below such levels, as it often signals that there might be an economic slowdown.

The minutes of the U.S Federal Reserve Bank’s June 2021 meeting, is scheduled to be released later in the day with currency traders looking for further guidance on the Apex bank’s monetary policy outlook.

Though recent macros kept DXY bulls in action with a significant number of investors having enough evidence in pre-empting a slightly hawkish narrative.

In addition, a number of currency traders anticipate the central bank will likely point out tapering in Q3 and further consider and then implement later this year, with rising inflation and stronger economic growth in play, suggests the Fed might act sooner than the market expects.

In the meantime, considering broader market bias, the outlook for the dollar is seen slightly bullish in the near term with recent price patterns hinting the greenback has room for more upsides amid growing concerns the Jerome Powell led team might tighten monetary policy.

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