USD strength builds as markets look ahead to FOMC Minutes

Frank Walbaum

Important news this week

Tue, 06th 08:35 CET JP BoJ Gov Uead Speech.

Wed, 07th, 20:00 CET US FOMC Meeting Minutes.

Fri, 09th, 14:30 CET CA Unemployment Change / Employment Rate.

USD strength builds as markets look ahead to FOMC Minutes

The US Dollar continues to strengthen, with the DXY potentially pushing beyond the 102 resistance zone. The focus now shifts to tomorrow's FOMC meeting minutes, which could provide fresh clues about the Fed's next steps. CAD remains weaker and could become more volatile toward the weekend as additional economic data arrives.
Metals are moving lower, while stocks continue to rise on positive sentiment and expectations that no further rate hikes may be needed. AUDUSD is confirming the positive tone in equities, while the Japanese Yen is weakening again.

Market talk

The DXY is approaching an important technical area around 102. A sustained break above this zone could strengthen the current USD trend and potentially trigger further buying. The FOMC minutes could become the catalyst, particularly if they reveal a more cautious view on inflation or future rate policy than markets currently expect.
The resilience of equities despite the stronger Dollar is also worth watching. AUDUSD is often sensitive to changes in global risk appetite, and its current strength supports the idea that investors remain comfortable with risk. If the Dollar continues higher while equities and AUDUSD hold their ground, markets could be entering a more unusual environment where both USD and risk assets remain supported.

Tendencies in the markets

Equities positive, USD strong, crypto sideways, oil weaker, metals down, JPY weak.

Author

Frank Walbaum

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