Investing.com - The U.S.
dollar traded calmly Wednesday ahead of the release of the minutes from the last Federal Reserve meeting, while sterling gained as inflation fell by less than expected in April. At 04:55 ET (08:55 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded marginally higher at 104.600.
Dollar seeking direction ahead of Fed minutes The dollar is struggling to move in any meaningful fashion as traders await the release of the minutes from the last Fed meeting, searching for more cues on the likely path of U.S. interest rates towards the end of the year.
Last week’s soft-than-expected consumer inflation data raised hopes of rate cuts in a reasonably short time, but a series of Fed officials have continued to call for policy caution. Fed Governor Christopher Waller on Tuesday said recent economic data indicates the Fed's restrictive policy is working as directed, while Atlanta Fed Chair Raphael Bostic said the central bank needs to exercise caution ahead of its first rate cut to lead to pent-up spending and send inflation "bouncing around." “We should get a bit more clarity on the FOMC thinking in the May meeting minutes,” said analysts at ING, in a note.
“While there should be evidence of increasing concern around the disinflation hiccups, Powell’s messaging seemed to denote a broad optimism on future price developments.” Sterling gains after UK inflation data In Europe, GBP/USD rose 0.2% to 1.
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