According to Chris Turner, global head of strategy at ING, suggests that the market is firmly of the opinion that the Federal Reserve will still cut 25 basis points on 31 July.

“We’ll hear more on this today from: i) the release of the text of Fed Chair Powell’s House testimony (12:30 GMT), ii) the testimony itself (14:00 GMT) and then iii) the release of the FOMC June minutes at 18:00 GMT. The dollar has been performing well over the last week but we would not chase it higher as Powell will presumably focus on the reasons why the Fed will cut in late July. (We doubt he’ll push back on easing expectations for fear of damaging business confidence and the stock market). DXY may stall around the 97.70/80 area.”