As we approach the halfway point of what’s so far been a subdued week of trade, markets may finally have a reason to move. Tonight sees the release of the eagerly anticipated Federal Open Market Committee meeting minutes from their recent gathering in June.
The announcement was one of the most controversial of recent times, with the Fed surprising markets with a more hawkish than expected message. The confirmation that tapering talk had begun, and that rates may rise sooner than many had forecast, caught participants off-guard.
Tonight’s minutes will provide more insight into the Fed’s thinking and may once again push hawkish tones across financial markets. The greenback will certainly be in focus tonight and will be the key barometer to the market’s interpretation of the new information. $1.3725 is a key level to watch in the short term which is the recent low (Friday), further down, $1.3680 is another important support level. On the upside, $1.39 and $1.40 are the key hurdles.
Written by Viv Savani. 7:03am, July 7th 2021
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