August 18, 2021

Investor Attention! Please Be Ready For The Minutes Of The FOMC Meeting Later

The US dollar remained traded higher, despite having begun to show a decline in the European session as market focus is now focused on the publication of the FOMC meeting minutes report early Thursday morning.

The dollar index which measures the strength of the greenback dollar against a basket of major currencies traded around 93.00 at the beginning of the European session.

Investors will be looking closely at clues on the Federal Reserve’s (Fed) timeline for reductions in asset purchases and interest rate hikes that were discussed at recent policy meetings.

While the loonie dollar traded back stable after depreciating lower against the USD, with investors now also awaiting the release of Canadian inflation data tonight.

The kiwi dollar continued to trade under pressure after touching a 9 -month low against the USD in the previous session following the decision of the Reserve Bank of New Zealand (RBNZ) to keep interest rates unchanged at a policy meeting today.

The decision was made following a curfew imposed across New Zealand after several cases of Covid-19 infection due to the Delta variant were detected in the country on Tuesday.

In addition, the Aussie dollar also traded gloomily amid market uncertainty following the Covid-19 case and the weak performance of Asian stock markets due to tightening regulations by China over its dominance of its technology sector.

Meanwhile, the euro continued to hover around the lowest level since November 2020 it reached in the Asian session, trading at 1.17200 against the greenback.