Fear about slowing global growth and rising covid cases is weighing on sentiment and supporting the safe-haven dollar. The Fed’s Meeting Minutes are eyed after the RBNZ surprised by leaving rates unchanged. Gold remains below $1,800 and cryptocurrencies have been edging lower.
US COVID-19 cases continue rising, nearing a daily average of 140,000, resulting in pressures on hospitals in some undervaccinated areas.
Federal Reserve Chair Jerome Powell refrained from making any significant comments in his speech on Tuesday, saying only that Delta covid variant causes uncertainty. He leaves the focus on Wednesday’s FOMC Meeting Minutes.
They are set to reflect differences within the central bank between those wanting an announcement about tapering bond buys in September and those holding back. Comments on inflation – transitory or not – and employment will be of high interest.