EUR/USD drops to daily lows near 1.2180 as USD gathers strength on FOMC Minutes


  • EUR/USD fell sharply with the initial market reaction to FOMC Minutes.
  • US Dollar Index posts strong gains above 90.00.
  • FOMC Minutes showed some policymakers are concerned about rising inflation.

The EUR/USD pair turned south and dropped to a daily low of 1.2175 during the American session as the minutes of the FOMC's April 27-28 meeting provided a boost to the greenback. As of writing, the pair was down 0.25% on the day at 1.2190.

DXY jumps above 90.00

The FOMC Minutes revealed that a couple of Fed policymakers raised risks of inflation building to unwelcome levels before it becomes sufficiently evident to induce a policy reaction. Additionally, a number of participants argued for a discussion on an adjustment to asset purchases in the upcoming meetings if the economy continued to make progress toward the goals. 

The USD gathered strength against its rivals on these relatively hawkish remarks and the US Dollar Index (DXY) climbed to a daily high of 90.20. As of writing, the DXY was up 0.42% on the day at 90.15.

FOMC Minutes: Participants agreed economy is still far from Fed's goals.

In the meantime, the benchmark 10-year US Treasury bond yield is rising 2.7% on the day at 1.681% and helping the USD outperform its rivals.

Technical levels to watch for

EUR/USD

Overview
Today last price 1.2185
Today Daily Change -0.0037
Today Daily Change % -0.30
Today daily open 1.2222
 
Trends
Daily SMA20 1.2093
Daily SMA50 1.197
Daily SMA100 1.2044
Daily SMA200 1.1962
 
Levels
Previous Daily High 1.2234
Previous Daily Low 1.2151
Previous Weekly High 1.2182
Previous Weekly Low 1.2052
Previous Monthly High 1.215
Previous Monthly Low 1.1713
Daily Fibonacci 38.2% 1.2202
Daily Fibonacci 61.8% 1.2183
Daily Pivot Point S1 1.2171
Daily Pivot Point S2 1.2119
Daily Pivot Point S3 1.2088
Daily Pivot Point R1 1.2254
Daily Pivot Point R2 1.2285
Daily Pivot Point R3 1.2337

 

 

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