The recently released FOMC meeting minutes revealed an unexpectedly hawkish stance, providing a significant boost to the US Dollar across global markets. Federal Reserve officials explicitly discussed the possibility of further interest rate hikes to ensure inflation returns to target levels. This hawkish revelation intensified the downward pressure on the EUR/USD pair, while the US Dollar Index (DXY) extended its gains. Notably, the USD/JPY pair is now on the verge of breaking through key technical resistance levels as divergence in monetary policy widens. Commodity-linked currencies, including the Australian Dollar, remained under pressure as the greenback dominated trading sessions. Market participants are now recalibrating their expectations, pricing in a more aggressive tightening path for US monetary policy following the release.
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