Fed Hawkish Minutes Keep Upside Rate Risks – ING

ING strategists Michiel Tukker and Benjamin Schroeder point out that the Federal Reserve's June meeting minutes revealed a hawkish bias, reinforcing the view that interest rate risks remain tilted to the upside.

Although the Fed left policy unchanged, the minutes underscored cautiousness about inflation and the economic outlook, leaving the door open for further tightening if needed.

This tone suggests persistent pressure on FX markets, particularly for dollar pairs, as rate expectations stay elevated.