EUR/USD turns lower after FOMC minutes

Matías Salord FXStreet

EUR/USD spiked higher after the release of the FOMC minutes but it quickly tuned to the downside, trimming recent gains. The pair rose to 1.1355 immediate after the release but now is trading near the 1.1320 area, moving toward daily lows.

Earlier today the pair bottomed at 1.1311, the lowest level since June 28. After the beginning of the American session, recovered some lost ground but the momentum now is starting to favor again the downside.

The minutes from the latest FOMC meeting, when the Fed, as expected rose interest rates to the 1.00-1.25% range, showed that there is no agreement on when to start the normalization process of the balance sheet. According to the document, most members viewed recent softness in inflation as having little bearing on the trend.

The greenback rose modesty in the market after the minutes. The impact overall was limited in the immediate minutes, with equity prices moving marginally lower and US yields higher, all remaining within day’s range.

Levels to watch

To the upside, resistance levels might lie at 1.1345 (20-hour moving average), 1.1370 (daily high) and 1.1390 (Jun 28 high). On the flip side, support could be seen at 1.1310 (daily low), 1.1290 (Jun 28 low) and 1.1265 (May 23 high).

Author

Matías Salord

FXStreet

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

GBP/USD stays slightly offered below 1.3600

Following an initial drop to fresh six-day lows, GBP/USD now picks up some updside traction and trades in levels just shy of the 1.3600 barrier on Thursday. The generalised cautious tone among market participants continue to underpin the Greenback ahead of Friday’s data releases and the Fed Warsh’s speech.

EUR/USD challenges 1.1650; US Dollar remains inconclusive

EUR/USD now manages to regain some composure, trimming earlier losses and reclaiming the mid-1.1600s on Thursday. The pair’s pullback comes on the back of marginal gains in the US Dollar, as market participants now shift their attention to Friday’s NFP revision and the speech by Chair Warsh at the Jackson Hole Symposium.

Gold recovers $4,600, buyers unwilling to give up

Gold adds to Wednesday’s pullback, although it manages to pick up some pace and come closer to the $4,600 mark per troy ounce on Thursday. In the meantime, the yellow metal remains on the back foot despite the widespread caution and the lack of clear direction of the US Dollar.

Crypto Today: Bitcoin, Ethereum, XRP bulls regain strength amid steady capital inflows

Cryptocurrency prices are broadly edging higher on Thursday, led by Bitcoin’s uptick near $80,000. Altcoins mirror Bitcoin’s short-term bullish outlook, with Ethereum trading above $2,500 and Ripple hovering above its key $1.40 support.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.

Kevin Warsh’s Jackson Hole dilemma: Say too much, too little, or just enough

Kevin Warsh is preparing to deliver his first Jackson Hole speech as Federal Reserve (Fed) Chair on Friday, and expectations extend well beyond whether interest rates will be raised or left unchanged in September.