After an unsuccessful attempt to break above the 1.12 handle at the beginning of the NA session, the EUR/USD
pair gathered momentum and rose to 1.1220 following the release of the
FOMC meeting minutes. As of writing, the pair is trading at 1.1218,
holding on to its daily gains.
The general assessment of the economy was largely unchanged according
to the minutes as the members saw the job market strong and the
consumer confidence solid. On the other hand, policymakers agreed that
they need to see the data to continue to improve to verify that the
recent slowdown in the economic activity was temporary. Although the
expectations of a June rate hike solidified above 80% according to the
CME Group FedWatch, the probability of two more rate hikes in 2017 eased
to 46% from 50%, pushing the US Dollar Index below 97. As of writing, the index was down 0.34% on the day, at 96.95.
Tomorrow's economic docket
will feature the weekly initial jobless claims, wholesale inventories
and the trade balance data from the United States and strong readings
could allow the investors to start pricing the possibility of two more
rate hikes in 2017, helping the greenback recover its recent losses.
Technical outlook
The immediate resistance for the pair could be seen at 1.1265 (May 23
high) before 1.1300 (Nov. 9 high) and 1.1365 (Aug. 18 high). To the
downside, supports are located at 1.1200 (psychological level), 1.1170
(daily low) and 1.1100 (May 19 low).
Source:
https://www.fxstreet.com/news/forex-today-fomc-no-surprises-in-minutes-dxy-and-10-y-us-yields-lower-stocks-higher-201705242026
Source:
https://www.fxstreet.com/news/forex-today-fomc-no-surprises-in-minutes-dxy-and-10-y-us-yields-lower-stocks-higher-201705242026
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