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EUR/USD loses momentum before testing 1.1800, clings to modest gains near 1.1770

  • EUR/USD remains on track to close the day in the positive territory. 
  • US Dollar Index erases large part of Tuesday’s gains.
  • Investors are waiting for FOMC to release the minutes of its September meeting.

The EUR/USD pair dropped below 1.1750 on Tuesday and spent the first half of the day fluctuating in a narrow range around 1.1730. With the greenback struggling to preserve its strength, however, the pair gained traction in the American trading hours and touched a daily high of 1.1782. As of writing, EUR/USD was up 0.33% on the day at 1.1772.

Risk flows hurt USD in American session

Despite the fact that US President Donald Trump terminated stimulus talks until after the election, the market mood remains upbeat on Tuesday on hopes of sides agreeing on standalone bills on payroll protection and stimulus checks.

Reflecting the risk-on market environment, major equity indexes in the US opened sharply higher and the greenback struggled to find demand as a safe-haven. At the moment, the US Dollar Index is losing 0.27% on the day at 93.59 and the S&P 500 Index is up 1.43% at 3,409.

At 1800 GMT, the FOMC will release the minutes of its September meeting, at which two officials voted against the updated forward guidance.

Previewing the FOMC’s publication, “the predicate for the Fed’s policy innovations is the governors’ view that, despite the improved forecast in the Projection Materials, the USD economy is going to need substantial rate and spending support for several years,” said FXStreet analyst Joseph Trevisani. “It is that economic view and any elucidation and details the minutes may provide that give the FOMC record its interest.”

Technical levels to watch for


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