Dollar Stays Steady as Markets Await FOMC Minutes

The US Dollar has been experiencing range-bound trading as investors await the release of the Federal Reserve's July FOMC minutes.

ING's Chris Turner notes that the Dollar remains supported by higher energy prices and long-end US yields, but FX volatility is still low, making carry trades a favorable option.

Turner expects the FOMC minutes to show a less hawkish Federal Reserve than implied by prior Dot Plots, with upcoming CPI and jobs data, as well as the Jackson Hole symposium, playing a more decisive role in determining interest rates.

ING's base case is that there will be no September hike, leading to a slightly softer Dollar and DXY remaining within a tight range of 99.40-99.80.