The US Dollar Index, which measures the USD against a basket of currencies, is trimming previous gains as risk aversion eases somewhat during the early European session. The Greenback, nevertheless, maintains its broader positive tone from last week's lows, with downside attempts limited at 97.00 for now.
US President Trump’s announcement of 50% tariffs on imports for copper products and the threat of imposing 200% levies on pharmaceuticals rattled markets on Thursday, but the market reaction was contained.
These measures came less than 24 hours after setting 25% tariffs on products from Japan and Korea, two of the three major Asian partners, and moving the deadline to August 1 in a decision that, according to the US president, is “firm, but not 100% firm.”
The US Dollar appreciates for the third consecutive day, but remains trapped within Tuesday’s trading range, with US Treasury yields ticking lower for the first time in the last six days.
The market mood has brightened somewhat on the European session opening. The main stock indexes are posting gains, as the market becomes familiar with unexpected turns in the tariffs saga. The cautious mood, however, is keeping Dollar downside attempts limited so far.
The focus today is on the minutes of the last Federal Reserve meeting. Recent employment data has endorsed Chairman Powell’s hawkish stance. The risk for the US Dollar is skewed to the upside.
FOMC stands for The Federal Open Market Committee that organizes 8 meetings in a year and reviews economic and financial conditions, determines the appropriate stance of monetary policy and assesses the risks to its long-run goals of price stability and sustainable economic growth. FOMC Minutes are released by the Board of Governors of the Federal Reserve and are a clear guide to the future US interest rate policy.
Next release: Wed Jul 09, 2025 18:00
Frequency: Irregular
Consensus: -
Previous: -
Source: Federal Reserve
Minutes of the Federal Open Market Committee (FOMC) is usually published three weeks after the day of the policy decision. Investors look for clues regarding the policy outlook in this publication alongside the vote split. A bullish tone is likely to provide a boost to the greenback while a dovish stance is seen as USD-negative. It needs to be noted that the market reaction to FOMC Minutes could be delayed as news outlets don’t have access to the publication before the release, unlike the FOMC’s Policy Statement.