EUR/USD upside under pressure
Market consensus points to a hawkish tone from the minutes, although Bernanke would have the opportunity later to massage down the tone, netting a more friendly overcome for the single currency. In the opinion of BBH Global Currency Strategy Team, “Bernanke, who has expressed some surprise at the extent of the increase in market rates, is expected to continue to try calming investors' nerves. This warns that while there may be some volatility around the headlines from the FOMC minutes, there may not be much follow-through”.
EUR/USD levels to watch
The pair is currently advancing 0.22% at 1.2822 and a surpass of 1.2898 (high Jul.9) would target 1.2912 (23.6% of 1.3417-1.2755) en route to 1.2916 (high Jul.5). On the flip side, support levels align at 1.2765 (weekly cloud base) ahead of 1.2755 (low Jul.9) and finally 1.2740 (2013 low Apr.4).