EUR/USD modestly higher after FOMC

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Nov 18, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Córdoba) - EUR/USD turned to the downside after the release of the Federal Reserve minutes but it remained moving without a clear direction. It printed a fresh 7-month low at 1.0616 after the release of the minutes, then bounced to the upside and peaked at 1.0653. It was trading at 1.0630/50, around the same level it had before the document.

    According to the minutes, most FOMC members agreed that a rate hike in December was appropriate and that the actual decision depends on data. The next FED meeting will take place Dec 17/18, before then, new inflation and employment data will be released.

    EUR/USD holds near the bottom

    The difference between monetary policy expectations between the FED and the European Central Bank pushed EUR/USD toward 2015 lows. The US central bank appears to be ready to start its normalization process while the ECB is preparing more stimulus.

    Yesterday EUR/USD posted the lowest daily close since April and now is attempting to end the day above. Markets are still digesting the minutes.
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