Fed Minutes Boost US Dollar as Rate Cut Expectations Fade

The US Dollar strengthened against major currencies following the release of the Federal Reserve's latest meeting minutes. The document revealed that policymakers are adopting a cautious approach toward easing monetary policy, tempering market expectations for early interest rate cuts. Fed officials expressed ongoing concerns regarding inflation, suggesting that a restrictive stance may be necessary for longer than previously anticipated. This hawkish tilt has bolstered the USD's yield advantage, exerting downward pressure on pairs like EUR/USD and GBP/USD. Additionally, the prospect of sustained high rates weighed on non-yielding assets such as Gold (XAU/USD). Investors are now recalibrating their portfolios as the timeline for the first Fed rate cut shifts further into the year.