Federal Reserve Minutes and Weekly Claims Support Dollar Floor
The latest Federal Reserve minutes signaled policymakers broadly support rate cuts later this year, but stronger-than-expected weekly jobless claims data added weight to the resilience of U.S. employment.
Initial claims came in at 227,000, below the 235,000 estimate, supporting the “strong labor market” narrative after last week’s solid nonfarm payrolls.
Treasury yields were steady following the release, with the 10-year yield ticking up to 4.366% and the 30-year holding at 4.89%, preserving support for the dollar against major peers.
Trump’s Tariff Moves Shake Brazil, But Broader Dollar Impact Contained
President Trump’s escalation in the trade dispute with Brazil, imposing a 50% tariff set for August 1, triggered a sharp selloff in the Brazilian real, dropping 2.8% overnight to 5.6047 per dollar.
However, broader risk appetite in global markets remained intact, as Trump left open the possibility of extending deadlines if “compelling proposals” are offered.
While the Brazilian real faces downside risk, traders remain alert to potential spillovers into emerging market FX, though the dollar’s broader reaction has been muted with most tariff rates aligning with prior proposals.
