Dollar gains momentum as FOMC minutes awaited

During Wednesday’s Asian trading session, the U.S. dollar grew stronger against major currencies. Market participants are waiting to review the minutes from the Federal Reserve’s May meeting, hoping to gain fresh insights into the central bank’s future monetary policy amid global uncertainties.

The greenback began to rally after President Donald Trump postponed plans to impose a 50 percent tariff on European imports. In addition, new data revealed that U.S. consumer confidence jumped sharply in May. The Conference Board’s Consumer Confidence Index climbed from 86.0 to 98.0, signaling that American consumers are feeling more optimistic.

Investors are favoring the dollar as a safe-haven asset amid persistent fiscal challenges, economic concerns, and geopolitical tensions. In the Asian session today, the dollar reached an eight-day high of 144.77 against the Japanese yen, up from yesterday’s 144.14, and it might soon test resistance near the 149.00 level.

Similarly, the greenback hit five-day highs against other currencies. It rose to 1.1296 versus the euro, 1.3461 against the British pound, and 0.8292 compared with the Swiss franc. If this uptrend continues, traders expect resistance around 1.11 for the euro, 1.32 for the pound, and 0.84 for the franc.

The dollar also advanced against the Australian and Canadian dollars, reaching five-day peaks at 0.6426 and 1.3839 respectively. It is expected to meet resistance near 0.63 for the Aussie and 1.40 for the loonie. Looking ahead, investors are monitoring key releases such as Germany’s May unemployment figures, U.S. MBA mortgage approvals, and important manufacturing and services indexes from various Federal Reserve branches. The centerpiece today is the release of the FOMC minutes at 2:00 pm ET, which should shed further light on Fed policy directions.