Antje Praefcke, FX Analyst at Commerzbank, discusses how FOMC Minutes could impact the US Dollar.

The future is more important

“I don’t think that the minutes of the last Fed meeting in early May will provide much momentum for the Dollar, as the next FOMC meeting will be held in exactly three weeks.”

“25 bps more or less will not make much difference for the Dollar, something we have often pointed out. Instead, it is about how hawkish the Fed actually is.”

“As long as the comments and data tend to suggest that the Fed might deliver more or that the market’s rate cut expectations for the second half of the year are overly ambitious and might have to be adjusted, the Dollar is likely to be able to defend its gains.”