Geopolitical risks fail to lift the US Dollar as Fed minutes signal persistent inflation concerns and markets await jobless claims data.
The US Dollar Index slipped below 101.00 on Thursday, ignoring heightened Middle East tensions after US strikes on Iranian targets and retaliatory attacks on US bases. The USD was the weakest against the New Zealand Dollar, reflecting broader risk sentiment despite geopolitical risks.
Investors focused on upcoming US economic data, including weekly Initial Jobless Claims and June Existing Home Sales. The Fed’s June meeting minutes revealed policymakers’ concerns over elevated inflation risks, citing AI-driven demand, Middle East conflict, and tariffs as potential drivers.
Oil prices edged lower in European trading, while US stock index futures rose between 0.2% and 0.7%. Central bank commentary remains in focus as markets assess the Fed’s policy trajectory amid mixed economic signals.