Home Forex Market News Asian Session – Dollar maintains strength following Fed minutes

Asian Session – Dollar maintains strength following Fed minutes

The Federal Reserve minutes of the July policy meeting which were released on Wednesday gave a more hawkish-sounding tone and helped push the dollar higher.

The minutes showed the Federal Reserve Open Market Committee (FOMC) were more willing to raise interest rates sooner due to a surprisingly stronger recovery in the US labour market.

Markets reacted positively to the FOMC minutes and bought the dollar, which was already firm following a series of upbeat US housing data this week.

The dollar continued its upward momentum against the yen to reach its highest level in over four months at 103.95, close to the April 4 high of 104.11.

Focus now turns to Fed Chair Janet Yellen’s keynote speech at the Jackson Hole conference on Friday.

The broadly stronger dollar pressured the euro which extended losses in Asia to reach an 11-month low of 1.3241 after opening at 1.3258.

The key event in Europe today will be the release of Eurozone Flash PMI data. The market is expecting the data to disappoint.

Sterling edged lower 1.6562, losing all gains made following a more hawkish Bank of England minutes yesterday.

The Australian dollar extended its losses after a preliminary survey of China’s manufacturing sector showed growth in the world’s second largest economy missed expectations and the PMI fell to a 3-month low. The aussie opened in Asia at 0.9287 and slid to 0.9237.

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