Fed's Cautious Play and Global Currency Moves Shape Economic Horizon

The dollar remained stable as the Federal Reserve showed no rush to cut rates, despite potential hikes if inflation persists. Market participants expressed concerns over tensions in the Middle East, while speculation over ECB President Lagarde's future impacted the euro. Attention shifts to upcoming economic data releases.

The dollar's stability persisted on Thursday following the Federal Reserve's latest minutes, highlighting policymakers' reluctance to reduce interest rates immediately. Some members suggested potential rate hikes if inflation remains stubbornly high.

Investor anxieties rose amid reports of a U.S. military buildup in the Middle East, inciting fears of a conflict with Iran and boosting both oil prices and safe-haven assets. Despite this, the euro slightly dipped after European Central Bank President Christine Lagarde was rumored to leave her position earlier than expected.

With the Fed showing internal divides, attention turns to the anticipated release of key economic indicators across major markets, likely to influence global financial trends in the immediate future.

(With inputs from agencies.)