The dollar is little changed after last night's release of the FOMC minutes for July. That FOMC meeting was held before the release of the July jobs data – meaning that all the references to a 'solid' jobs market in those minutes are now under scrutiny, ING's FX analyst Chris Turner notes.
"Instead, we're all waiting on tomorrow's speech from Fed Chair Jerome Powell as to how significantly the Fed registered the substantial downward revisions to back-month job data. Before then, at 1330CET today, we'll have a speech from the Fed's Raphael Bostic. He's recently been saying he could vote for a rate cut soon, although one rate cut this year is his preferred adjustment."
"One interesting snippet for FX markets in those FOMC minutes were remarks that the available data showed 'relative stability' in foreign holdings of US assets. In other words, any tariff-driven exodus from US asset markets doesn't seem to be extending."
"98.00-98.50 looks to be the DXY range into tomorrow's speech from Chair Powell. Political pressure on the Fed's Lisa Cook to resign briefly weighed on the dollar yesterday. We doubt the dollar needs to sell off much more on this story given that President Trump frequently calls on Jay Powell to resign immediately as well."