Dollar traders wait for Fed minutes

19 Aug 2020 03:24 PM

Today (Wednesday) the dollar is struggling to recover from a 27-month low, after a record rise in US equities added to the pressure the currency was already experiencing from escalating trade tensions between Washington and Beijing.

The dollar index has lost more than 5% since the end of June, posting in July its biggest monthly loss for a decade as broad market risk sentiment rebounded and investors bet on stronger economic recoveries outside the US.

The biggest challenges the greenback faces are doubts about US progress in controlling the coronavirus, the ongoing dispute between the US and China, and fears that Congress will fail to agree on a relief package for the tottering American economy.

Investors are set to scan the minutes of the last Fed meeting for any hints on further actions it may take in September – they drop at 6pm London time.


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