The Federal Reserve minutes from June’s policy meeting revealed officials felt substantial further progress on the U.S. economic recovery “was generally seen as not having yet been met,” but agreed they should be poised to act if inflation or other risks materialized. The minutes also reflected a divided Fed wrestling with new inflation risks but still relatively high unemployment. “Various participants” at the June 15-16 meeting felt conditions for reducing the central bank’s asset purchases would be “met somewhat earlier than they had anticipated.” All told, the Dollar has held onto the gains seen during the last 24 hours across the board. US unemployment data is released at 1.30pm today as the broad-based US Dollar index trades at a 13 week high today
Although Sterling opened today at the lower end of its recent trading range against the stronger Dollar (weekly low $1.3760), it has held onto moderate gains across a broad range of currencies this week but failing (yet again) to break the key resistance level of EUR 1.1700. A close above here would suggest a retest of the yearly highs could be likely. For the time being, investors appear to be cautious over the Norther Ireland situation as well as the rising rates of covid infections in the UK.

The Euro opened at three-month lows against the US Dollar as sluggish Eurozone data does little to help the Euro’s cause. Germany’s trade balance for May also undershot consensus: EUR 12,6 billion, expected 15.4 billion, ECB Chief Christine Legarde will speak later today and is expected to unveil a ‘tweaked’ inflation target.