- 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.
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).