Forex Today: FOMC´s easing cycle didn’t spook dollar bulls

FXStreet Team FXStreet

Here is what you need to know on Thursday, August 22nd:

-US President Donald Trump tweeted that they were doing “great” with China, saying that the main problem the US is facing is Fed’s policy and Powell .

-German President Frank-Walter Steinmeier and FM Scholz down talk Merkel’s comments about the Withdrawal deal, reiterating that the withdrawal agreement is not open to re-negotiations. Later in the day, and following a meeting, Chancellor Merkel challenged PM Johnson to come up with a solution to avert a no-deal Brexit “n the next 30 days, rolling the ball back to the UK’s side of the court.

- FOMC Minutes showed that most policymakers viewed the recent rate cut as part of a mid-cycle adjustment in response to the recent changes in the economic outlook. In general, officials weren’t able to agree on the rate cut, but most of them agreed that forward guidance and QE might not be enough. Somehow, the Fed has hinted more rate cuts coming, yet the dollar ticked higher.

-US oil stockpiles decreased by less than expected in the US, but crude oil prices were unable to hold on to gains, edging lower in the US session .

- Safe havens gold and yen hold ground.

- Cryptocurrencies remained under pressure BTC settled above 10,000.

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FXStreet Team

FXStreet

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.