The US dollar is on the back foot

The US dollar is on the back foot as European trading gets underway this Tuesday. The greenback has been under pressure following a string of disappointing economic data and last week’s inflation numbers that read below expectations. Against this background, investors have been turning away from the greenback ahead of the release, later in the day, of last month’s FOMC minutes. Traders will scrutinise the minutes closely, hoping to find clues for the timing of the next Fed move, which is now widely assumed to be a cut. Against this background, dovish minutes could bring forward the market’s expectations for when the Fed will begin cutting rates and trigger further dollar weakness.

Ricardo Evangelista – Senior Analyst, ActivTrades