Hawkish FOMC minutes props up the US Dollar

Meanwhile, in the US, the Federal Open Market Committee (FOMC) released the minutes of its June meeting, triggering a rise in the Greenback. According to the document, some officials favoured a rate hike at the meeting but went along with a pause. The minutes showed a division among FOMC members. “Most participants observed that uncertainty about the outlook for the economy and inflation remained elevated and that additional information would be valuable for considering the appropriate stance of monetary policy”, the minutes noted.

More here: FOMC minutes: Some officials favoured a 25bps hike at the June meeting

Now, the focus is on the US jobs data where the nation will report on layoffs on Thursday, Jobless Claims, ISM Services and JOLTS ahead of Friday's Nonfarm Payrolls report. This slew of fresh data would be expected to overshadow today's FOMC minutes and offer clues as to the next move from the Fed where there is a possibility of two more hikes this year.

''US payrolls likely remained above-trend in June, but still representing slowing after ~300k expansions in Apr-May. We also look for the UE rate to drop a tenth to 3.6% and for wage growth to print 0.3% MoM,'' analysts at TD Securities said.

Other than this week's events, traders will then be looking ahead to next Wednesday's Consumer Price Index.