The dollar goes into today’s release of the 27 July FOMC minutes about 2% off the highs of the year. In the view of economists at ING, FOMC minutes as a communication tool against easing expectations should keep the US dollar supported.

Dollar to stay supported into FOMC minutes

“The question is whether the Fed wants to use these minutes as a communication tool to push back against the view of a 2023 easing cycle. Post-meeting rhetoric from the Fed suggests that this is more likely to be the case – especially since the Fed funds futures price the policy rate being cut from 3.60% to 3.20% in the second half of next year. A further rejection of this market pricing should help the dollar.”

“Favour DXY pushing up the 107.00 area.”