- The US dollar is giving profits, although it continues to quote within the previous ranges.
- The dollar and the Swiss Franco remain driven by the cautious feeling of the market.
- Investors expect the publication of FOMC minutes to obtain more orientation on the USD.
The recovery of the US dollar from a minimum of 14 years, at 0.7870, was rejected on Tuesday at 0.8000 for the second consecutive day, and the pair is quoting downward on Wednesday, returning to the middle part of the range of 0.7900.
The Swiss Franco is receiving support from a cautious feeling of the market and a somewhat weaker dollar, amid a slight setback in the yields of the US Treasury bonds to recover some losses. However, the price action is still trapped well within Monday’s negotiation range.
The dollar and the Swiss Franco can be seen in cautious markets
The feeling of risk has improved something, since investors assimilate an unexpected turn in Trump’s commercial saga, but the appetite for risk remains moderate, given the highly uncertain perspective for global trade. Safe assets, such as the US dollar and the Swiss Franco, are among the biggest beneficiaries in this context.
The attention now focuses on the publication of the minutes of the June Federal Reserve meeting. Powell surprised after that meeting, with an unexpectedly hard line that stopped the hopes of feat cuts in July or September and provided support to the US dollar.
Later, June US employment data confirmed the resilience of the labor market and relieved the pressures, apart from Trump’s, to reduce interest rates. The minutes of the meeting could support that opinion later today and give an additional impulse to the dollar.
Economic indicator
FOMC minutes
The Federal Open Market Committee (FOMC) organizes eight meetings per year and reviews the financial and economic conditions to determine the appropriate position on monetary policy. It also evaluates existing risks on long -term price stability objectives and sustainable economic growth. The elders of the FOMC publishes them the Board of Governments of the Federal Reserve System And it is a clear guide on interest rates in the United States. A change in this report affects the volatility of the dollar. If the minutes show a firm perspective, this will be considered as bullish for the dollar.
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Next publication:
LIÉ JUL 09, 2025 18:00
Frequency:
Irregular
Dear:
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Previous:
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Fountain:
Federal Reserve
The minutes of the Federal Open Market Committee (FOMC) are generally published three weeks after the day of the Policy Decision. Investors seek clues about policy perspectives in this publication along with the divided vote. It is likely that a bullish tone provides an impulse to the dollar, while a moderate posture is considered negative for the USD. It should be noted that market reaction to FOMC minutes could be delayed since the media do not have access to publication before launch, unlike the FOMC policy declaration.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
