USD strength likely to continue

The June FOMC minutes largely reflected Chair Yellen's caution during the postmeeting press conference. 

While progress continues to be made towards the Fed's goals, officials still want more evidence of such progress before they will be comfortable raising rates, particularly with some risks emanating from overseas and continued impact of USD strength, says Bank of America. 

"However, while Fed caution could signal "cold feet," the bar remains low for a hike. While rates have re-priced Fed expectations significantly since the June meeting. We look towards Chair Yellen's speech this Friday and testimony next week to gauge if recent USD strength will continue as the Fed makes progress towards its goals", says Bank of America.