• The index advances modestly beyond the 103.00 hurdle.
• US markets return to normal activity following Tuesday’s holiday.
• Factory Orders, FOMC Minutes take centre stage later in the session.

The USD Index (DXY), which tracks the greenback vs. a bundle of its main rivals, trades with small gains and looks to consolidate the trade above the key 103.00 barrier on Wednesday.

USD Index focused on data, FOMC Minutes

The index so far advances for the third session in a row against the backdrop of a generalized consolidative range in the global assets, as US markets slowly resume the activity in the wake of the Independence Day holiday.

In the meantime, investors are expected to shift their attention to the upcoming release of the FOMC Minutes, while the US labour market is seen regaining interest in light of the publication of the ADP report and weekly Initial Claims (Thursday) and June’s Nonfarm Payrolls and Unemployment Rate (Friday).

So far, market participants continue to price in a 25 bps rate hike by the Federal Reserve at its July 26 gathering, as the inflation still runs well above the Fed’s target and core prices remain sticky.

Back on the US docket, Factory Orders for the month of May are due later seconded by the IBD/TIPP Economic Optimism index, the FOMC Minutes and the speech by NY Fed John Williams (permanent voter, centrist).