Fed Meeting Minutes and UK Inflation Take Center Stage Today

2025-10-04 04:08:14

The dollar (USD) showed positive momentum Tuesday as traders exercised caution ahead of Wednesday's FOMC meeting minutes release and the upcoming Jackson Hole symposium later this week. Meanwhile, geopolitical tensions have resurfaced as a key market driver.

Here's what to watch on Wednesday, August 20:

The Dollar Index (DXY) posted acceptable gains around 98.30 despite generally declining US yields. The release of FOMC meeting minutes will be the main event, followed by weekly MBA mortgage applications and EIA's weekly US oil supply report. Fed officials Waller and Bostic are also scheduled to speak.

EUR/USD pulled back slightly, continuing Monday's decline and remaining below the crucial 1.1700 level. Final Eurozone inflation figures will be released alongside preliminary Q2 labor cost index data.

GBP/USD retreated to multi-day lows after breaking below the 1.3500 support. Inflation rates on both sides of the Channel will be in focus.

USD/JPY gave back Monday's gains, returning to the mid-147.00 range after previously breaking through the 148.00 barrier. Japan will release trade balance results and machine orders data next.

AUD/USD weakened further, dropping to near 0.6450, its lowest in three weeks. Consumer inflation expectations are due for release, followed by speeches from RBA officials Connolly and McFee.

Oil prices deepened their downward trend, falling below $62.00 per barrel on Monday as geopolitical tensions continued to ease.

Gold dropped sharply, retreating to $3,315 per ounce due to dollar strength and declining US yields. Silver similarly plunged to multi-day lows of $37.00 per ounce.

I've been tracking these markets all day, and frankly, I'm surprised at how complacent traders seem ahead of the minutes. Last time the Fed released minutes, markets went haywire for hours! The real story here is what's happening behind the scenes - Powell and his crew are clearly divided on the rate path, but nobody wants to admit it publicly.

The minutes will likely expose these disagreements, which could send markets into a tailspin. And with UK inflation data also coming out, we might see some serious volatility in sterling pairs. My money's on some dovish surprises in those minutes - central bankers are getting nervous about growth even if they won't say it out loud.

Disclaimer: For reference only. Past performance does not predict future results.

Fed Meeting Minutes and UK Inflation Take Center Stage Today

Here's what to watch on Wednesday, August 20:

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