FX.co ★ Dollar Edges Higher Ahead of Fed Minutes

The dollar index climbed beyond 98.3 on Wednesday, marking its third consecutive upward session as investors eagerly anticipated insights from the Federal Reserve’s July meeting minutes to gauge future policy directions. This meeting was particularly significant, as it was the first since 1993 to feature two dissenting votes. Fed governors Christopher Waller and Michelle Bowman advocated for a quarter-point rate cut, contrasting with the decision to maintain steady rates. Upcoming attention will be on Fed Chair Jerome Powell's comments at the Jackson Hole symposium, which may reveal whether the central bank intends to counter market expectations for policy easing. Currently, traders are assigning an 85% likelihood to a rate cut in September and projecting roughly 54 basis points of reductions by the year's end. The dollar exhibited widespread strengthening, most notably against the euro, British pound, and Australian dollar.