- 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. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD trades weak below 1.0800 amid Good Friday lull, ahead of US PCE
EUR/USD remains depressed below 1.0800 after soft French inflation data, amid minimal volatility and thin liquidity on Good Friday. The pair keenly awaits the US PCE inflation data and Fed Chair Powell's speech for fresh hints on next week's price action.
GBP/USD holds steady above 1.2600 as markets stay calm on Good Friday
GBP/USD trades sideways above 1.2600 amid a typical Good Friday trading lull. A broadly firmer US Dollar could keep any upside attempts limited in the pair ahead of the US PCE inflation data and Fed Chair Powell's appearance.
Gold reaches to all-time highs near $2,230, US PCE eyed
Gold price appreciates to all-time highs near $2,230 per troy ounce, attempting to continue its winning streak for the fifth successive session on Friday. However, trading volumes are light as market participants are likely observing Good Friday.
Jito price could hit $6 as JTO coils up inside this bullish pattern
Jito (JTO) price has been on an uptrend since forming a local bottom in early January. Since then, JTO has revisited the key swing point formed in early December, suggesting the bulls’ intention to move higher.
Key events in developed markets next week
Next week, the main focus will be inflation and the labour market in the Eurozone. We expect services inflation to be impacted by the easter effect, while the unemployment rate to be unchanged.