Huitong Finance APP News--

After the Federal Reserve announced the minutes of the May FOMC meetingwpnpokerThe dollar soared on Wednesday (May 22), a minute that triggered concerns about persistent inflationwpnpokerConcerns and indicated that interest rates are unlikely in the near future. Market analysis said that against the background of rising trading volume, the US dollar index is expected to challenge 105.wpnpoker.74, which is the nearly three-week high hit on May 9.

Treasury yields rose as Federal Reserve minutes highlighted policymakers 'doubts about an imminent rate cut. The rise in yields has boosted demand for the U.S. dollar, reflecting the market's reaction to the Fed's cautious stance on inflation.

Minutes of the Federal Open Market Committee (FOMC) meeting from April 30 to May 1 showed that market concerns about inflation persist. The minutes of the meeting showed that the Fed had made no significant progress in achieving its 2% inflation target, and several members discussed the possibility of further rate hikes if inflation did not fall as expected.

The hawkish tone of the minutes suggests that the Fed may keep interest rates higher for an extended period of time.

Chris Zaccarelli, chief investment officer at the Independent Advisors Alliance, pointed out that "the official slogan is long-term higher", emphasizing the Fed's commitment to controlling inflation.

According to the minutes of the meeting, several Fed officials stressed the need to be patient in cutting interest rates.

Federal Reserve Governor Christopher Waller said more evidence of easing in inflation and economic activity was needed before considering interest rate cuts.

Boston Fed President Susan Collins and Atlanta Fed President Rafael Bostick also emphasized the importance of caution.

Technical Analysis of the US Dollar

FXEmpire analyst James Hyerczyk said the U.S. dollar index was higher late Wednesday, at 104 at its 50-day moving average.wpnpokerThe strong range of.909 hovers, indicating that the strength is increasing in the near future.

A potential bullish breakout has been developing since the market successfully broke out of its longer-term 200-day moving average late last week (currently 104.376).

In addition to the 200-day moving average, another support level is the volatility bottom of 104.080. A successful breakthrough and rebound, coupled with increased trading volume, may eventually test 105.742 in the short term.

At 08:27 Beijing time, the US dollar index is now at 104.88.