The US Dollar in the green with markets bracing for Fed Minutes.
Markets are suddenly entertaining a possible rate hike by the Fed in the next three months.
The US Dollar Index trades back above 104 and is salvaging the weakness from Tuesday.
The US Dollar (USD) is in the green as it recovers earlier losses from Tuesday. The US Dollar Index (DXY) jumped higher, back above 104 after the Wall Street Journal reported a shift in the US Fed futures where suddenly a rate hike has become a possibility. The reason for this repricing is a wage report in the Eurozone from the European Central Bank (ECB) that revealed higher wages are still broad based and will result in more longer-term sticky inflation.
On the economic data front, traders are bracing for the release of the Fed Minutes later this evening. Together with the report of the Wall Street Journal it shows how fragile the market is currently pricing in any possibility whatsoever when it comes to rate policies. Traders will be even more looking for clues in the Minutes on whether the Fed will cut ahead of the summer, over the summer, or will not cut at all and might even hike
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