The dollar is hovering near 3 week highs this morning ahead of the Federal Reserve’s July meeting minutes, which will be released later today. The minutes are expected to hint at the Fed’s monetary policy outlook, and maybe shed some light on the possibility of further rate cuts. Fed Chair Jerome Powell will give a speech on Friday, which is eagerly awaited, especially following the inversion of the US yield curve last week.
Meanwhile, President Trump has confirmed that he is considering a temporary payroll tax cut to help boost the US economy. US workers pay payroll taxes on their earnings to help towards health insurance, social security and pensions.
Trump also spoke about trade tensions between the US and China, hinting that a rate deal could be a while away. He said that he is not “ready to make a deal unless they are going to make the right kind of deal.”
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