US Dollar Flat, Waits for Fed Minutes

The US dollar traded almost flat against most of its major peers amid profit-taking and in anticipation of the upcoming policy minutes from the Federal Reserve.

Analysts pointed out that the greenback has rallied as much as 7% since February, prompting traders to look for more reasons to buy the currency. Yet fundamentally, the environment remained positive for the currency.

US Treasury yields pulled back from the 7-year highs during the Tuesday’s trading session. But yield for the benchmark 10-year note continued to hang above the 3% level.

The Fed will release minutes of its latest policy meeting tomorrow. Market participants will search for hints about additional interest rate hikes this year. For now, speculators still price in a 100% chance of a June hike as was shown by the CME FedWatch tool.

The CME FedWatch tool slipped a bit by 0.07% to 93.616.

EUR/USD rallied from 1.1791 to 1.1829 intraday but pulled back to 1.1778 by 19:02 GMT today. GBP/USD traded at about 1.3430 after opening at 1.3419 and rallying to the daily high of 1.3491. USD/JPY was little changed at 111.00.

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