US dollar at the mercy of the market's take on FOMC minutes

• The US dollar has bounced back since the weekend, now eye the FOMC minutes.
• US traders returning having profited ahead of the long weekend fuelled by the June hawkish hold by the Federal Reserve. 

The focus will now be on the minutes of the June meeting that are to be published on Wednesday in the US session. 

A more hawkish tilt from within the minutes will likely lend further support to the greenback, especially in the wake of disappointing data from Europe on Tuesday. 

The Eurozone ZEW surveys disappointed high expectations that fell to 63.4 (vs. estimate 75.2, prior 79.8), while the current situation rose to +21.9 (est. +5.5, prior -9.1).

Eurozone expectations fell to 61.2 (from 81.3) while the current situation rose to +6.0 (from -24.4). 

German factory orders in May fell 3.7% MoM (est. +0.9%m/m) due to a slump in auto sales.

The data tarnished the allure for the euro ( by far, the largest component of the DXY index, making up almost 58 per cent (officially 57.6%) of the basket).

The disappointing data out of Europe sent the euro towards a three-month low against the dollar.

DXY technical analysis

Meanwhile, Friday's high near 92.741 is being targetted and with a break there, bulls will be hunting down the 93 areas ahead of the March 31 high near 93.437.