FEDAhead of today’s release of the FOMC minutes it has been the commodity dollars that have reacted most strongly to a stronger USD, whilst eurodollar and cable have been contained to a very narrow trading range. It will be interesting to see whether these two laggards will play catch up once the minutes hit the news wires.

USD/JPY too has been contained with the pair cautiously approaching the 124 price point, but finding the 123.60 price level so far difficult to breach. For the USD/JPY it will be a case of the reaction in equities which will determine whether we see any further upwards momentum in this pair, as the market waits for clues as to the FED’s intentions towards interest rates.