The euro pushed toward its highest level since June 17 on Wednesday as the dollar slid to a multi-month low ahead of the Federal Reserve's July meeting minutes. Softer U.S. data and fading rate-hike bets are driving the greenback's retreat, while a separate dollar-index reading points to a similar three-month low.
EUR/USD inched up 0.2% to trade near $1.1520, probing its highest levels since June 17, 2026. The move came as the greenback stayed on the defensive across the board, giving European majors room to test multi-month peaks.
Dollar pinned near multi-month lows
The Dollar Spot Index slipped 0.8% to trade around 98.87 at 10:40 AM EST on Wednesday, remaining close to its lowest levels since June 5. A separate reading, the U.S. Dollar Index (DXY), placed the index between 99.4 and 99.6, its lowest point in more than three months.
That weakness follows a run of disappointing U.S. economic data that has eroded expectations for additional Fed rate hikes this autumn. That run includes soft CPI readings and an unexpected July payroll contraction. As a result, traders are now focused on the July FOMC meeting minutes, due later in the session, to gauge whether the 9-3 vote to hold rates in the 3.50%-3.75% range points to a prolonged policy hold.
Yields ease, majors advance
Benchmark 10-year Treasury yields eased to 4.68% on Wednesday, with the 30-year yield backing off to 5.27%, offering tactical breathing room to cross-border capital flows. With the dollar on the defensive, the British pound advanced 0.2% to trade near $1.3520, heading toward its highest levels since May 12.
The dollar's decline has also coincided with increased speculation in gold markets, since a weaker dollar often boosts the metal's appeal as an investment. Market pricing tied to that decline points to a 20% increase in the likelihood of gold reaching $4,700 in August.
Yen holds near intervention zone
In Asia, the Japanese yen steadied at 159.22 per dollar, a marginal 0.3% daily gain that nevertheless kept the pair locked near the psychologically critical 160 mark. Currency desks therefore remain vigilant for fresh intervention signals from Tokyo should carry-trade demand push the pair across that threshold.
Sources: Investing.com, Crypto Briefing
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