EUR/USD holds to gains above 1.1250, as market participants ignore FOMC minutes
|- Fed’s minutes show no surprises, offset by Powell’s comments earlier today.
- EUR/USD consolidates gains, having best day since June 21.
The EUR/USD pair remained above 1.1250 following the release of the FOMC minutes that were mostly ignored by market participants. The pair continues to trade within the 1.1265/1.1250 range, consolidating daily gains and 50 pips above yesterday’s close, the best performance in three weeks.
According to the minutes, many officials from the Federal Reserve saw a stronger rate cut case amid rising risks. Chair Powell today repeated the argument by signaling that “most” at the FOMC see that scenario. The document showed that only a couple of policymakers favored cutting rates at that meeting. Back in June, the Fed kept the rate unchanged as expected. One member dissented, James Bullard, who asked for an immediate rate cut. On Thursday, Powell will again present testimony.
The US Dollar held around daily lows after the minutes and dropped further against the yen. Gold prices rose further while equity prices remained in positive territory.
Moving away from July lows
Yesterday EUR/USD bottomed at 1.1191, the lowest since late-June and bounced modestly. Today it is recovering further and holding on top of 1.1250. If it continues the next key level could be seen at 1.1285 (20-day SMA). On the flip side, now 1.1230 could be seen as the immediate support followed by 1.1180 (June low).
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.