As traders analyze recent PPI data and the FOMC minutes, the dollar index was little changed at 105.9 on Wednesday, 

Holding below November highs of 106.9 hit last week. Last month, US producer prices increased more than forecast, and both the headline and annual core rates increased.

In accordance with the message from last month, the FOMC minutes revealed the Fed is prepared to maintain a tight monetary policy,

But the next steps are still unknown and data dependent. On the other side, recent remarks from a number of Fed officials have been interpreted as being more dovish, 

Which has decreased expectations that the central bank will hike rates again this year.

Additionally, Treasury rates have fallen significantly from multi-year highs as demand for safe haven assets has increased due to the Middle East conflict.

The next significant event, providing more hints on the inflation direction, will be the important CPI report expected tomorrow.

Investors presently anticipate a little slowdown.

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