What to watch out in today’s FOMC minutes?

Today, Federal Reserve Open Market Committee (FOMC) will release the minutes of its July meeting, which is the biggest event risks for the dollar-based pairs. Today’s minutes are of particular interest to have a feel of which camp within the FOMC gaining momentum and what are the views with regard to the UK referendum. Several policymakers, including the New York Fed president William Dudley, have warned that September meeting is quite live for rate hikes but the market is far from pricing it. As of now, the market is pricing just 50 percent chance of a hike this year.

• Key to watch out will be the sets of risks to U.S. economic outlook, other than strong USD.
• ‘Many’, ‘some’, these are the wording that will require close scrutiny to have a feel, how many policymakers are in which camp, dovish or hawkish.
• Outlook for hikes, as policymakers skipped July, any hints for what might occur in September.
• What are the factors those are worrying Fed?
• How concerning Brexit risks for September meeting?
• Outlook on inflation since it’s still well below Fed’s 2 percent threshold?

Today’s minutes may prove positive for Dollar, since July statement was quite dovish and didn’t mention much of a detail on Fed’s thinking, especially without Janet Yellen’s press conference.

Moreover, it is likely to be mentioned that many members feel another 25 basis points rate hike to be required over next few meetings.  Federal Reserve chair Janet Yellen is scheduled to speak next week at Jackson Hole Symposium.

The minutes will be released at 18:00 GMT.