All Eyes on the FOMC Minutes?

All Eyes on the FOMC Minutes?

20.05.2026

In the previous day’s U.S. currency markets, the U.S. dollar remained at elevated levels amid rising U.S. interest rates, as inflation concerns persisted against a backdrop of uncertainty surrounding the situation in the Middle East and high crude oil prices.The USD/JPY pair fluctuated within a range from the upper 158.70s to the mid-159.20s before closing in the low 159s; resistance around the 159.00 level is likely to be a key factor.On the downside, the focus will likely be on whether the 158.50 to 158.00 range will act as support. With the release of the FOMC minutes scheduled for today, we will be watching to see if there are any changes in market sentiment regarding expectations for U.S. interest rate hikes and the interest rate outlook.

European currencies were weighed down by the strong U.S. dollar, causing the euro to fall against the dollar. The euro/dollar pair fell from the 1.1660 level to the 1.1590 level before closing around 1.1607; the immediate focus will be on whether it can hold around the 1.1600 level.On the upside, the 1.1660 to 1.1700 range is likely to be watched, while on the downside, the 1.1590 to 1.1550 range is likely to be in focus. The revised April HICP for the eurozone is scheduled for release today, and we will be watching to see how the euro reacts to the inflation data.

Today’s economic indicators include South Africa’s April Consumer Price Index (CPI) at 17:00, the Eurozone’s April Harmonized Index of Consumer Prices (HICP, revised) and HICP Core Index (revised) at 18:00,the U.S. MBA Mortgage Applications Index and South Africa’s March retail sales at 20:00, remarks by Bank of England (BOE) Governor Bailey at 22:15, and the FOMC minutes at 27:00.The Eurozone HICP is expected to come in at 3.0% year-over-year, and the HICP Core Index at 2.2% year-over-year; attention will focus on references to inflation and interest rate outlooks in the FOMC minutes.Eurozone price indicators are likely to be key drivers during European trading hours, while the FOMC minutes will likely be a key factor toward the end of the New York session; we will carefully monitor the reactions of the euro, the pound, and the U.S. dollar.