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: Gains remains capped below 1.3400

GBP/USD trades in positive territory, with the upside capped below 1.3400 in the European session on Friday. The US Dollar extends weakness following a weaker-than-expected US Nonfarm Payrolls report, which fades Fed rate hike expectations.

EUR/USD stays firm around 1.1450 amid weaker US Dollar

EUR/USD remains on the front foot at around 1.1450 in European trading on Friday. The pair seems poised to register gains for the first time in three weeks as receding US Federal Reserve rate hike bets keep the US Dollar under pressure.

Gold stays on track to snap four-week losing streak amid fading Fed hike bets, weak USD

Gold retains its bullish bias for the third straight day and traders near a one-and-a-half-week high during the first half of the European session. The precious metal seems poised to register gains for the first time in five weeks, with bulls still awaiting a move beyond the $4,200 mark before positioning for an extension of this week's recovery from the lowest level since November 2025.

Hyperliquid gears up for a higher leg as bullish momentum resurfaces

Hyperliquid (HYPE) extends gains above $66 maintaining a long-term upward trend supported by its rising 50-day EMA around $60. Retail demand for HYPE rises in the near term, with Open Interest up around 5% over 24 hours as funding rates hold above zero, while institutional demand remains muted so far this week.

Economics week ahead

Market attention turns to next week's FOMC minutes for any signs of what could shift a divided Committee from a hold toward rate hikes. The dot plot from the last meeting made clear that policymakers are split on whether rate hikes are warranted, but with forward guidance getting tamped down under Chair Warsh, the Fed's reaction function remains uncertain in terms of what exactly would build broader support for more restrictive policy.

Kevin Warsh offers no policy clues: Why markets still got their answer

Financial markets came to Sintra looking for clues about the Federal Reserve's (Fed) next move. They largely left with confirmation that Fed Chair Kevin Warsh intends to make those clues much harder to find.