The US dollar has recovered since the weekend, and traders are now waiting for the FOMC minutes.
US traders returned having benefited ahead of the holiday weekend, fueled by the Federal Reserve’s hawkish stance in June.
The spotlight will now shift to the minutes of the June meeting, which will be released in the US session on Wednesday.
The greenback would likely benefit from a more hawkish tone in the minutes, especially in light of poor data from Europe on Tuesday.
High expectations were disappointed in the Eurozone ZEW surveys, which dropped to 63.4 (vs. estimate 75.2, prior 79.8), although the current situation improved to +21.9 (approx. +5.5, prior -9.1).
Expectations in the Eurozone have dropped to 61.2 (from 81.3), while the current situation has improved to +6.0. (from -24.4).
Due to a drop in auto sales, German manufacturing orders declined 3.7 percent MoM in May (estimated +0.9 percent m/m).
The statistics tainted the euro’s attraction (the euro is by far the largest component of the DXY index, accounting for over 58 percent (technically 57.6%) of the basket).
The euro fell to a three-month low versus the dollar after poor statistics from Europe.
Meanwhile, bulls are aiming for Friday’s high at 92.741, and if it is broken, bulls will push for the 93 regions ahead of the March 31 high around 93.437./n
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