EUR/USD advances to 2-week tops near 1.1370 on broad USD weakness

• USD continues to weaken ahead of FOMC minutes.
• US Dollar Index slumps to 14-day lows.
• Consumer confidence in the euro area improves slightly in February.

The EUR/USD broke above the 1.1350 resistance area in the NA session and touched its highest level in two weeks at 1.1372. As of writing, the pair was trading a couple of pips below that level, adding 0.21% on a daily basis.

Earlier in the session, the European Commission announced that the Consumer Confidence Index improved to -7.4 in February (preliminary) to come in better than the market expectation of -7.8. Commenting on the data,  “The geopolitical risks that play out over the coming weeks are likely to decide on very divergent confidence scenarios for the Eurozone consumer. With finances in a strong position, consumption is likely to be an important driver of the economy in uncertain times as today’s figures indicate,” said ING’s senior economist Bert Colijn.

On the other hand, with the 10-year US T-bond yield failing to stay in the positive territory, the US Dollar Index lost its traction in the second half of the day and slumped to its lowest level since February 6 at 96.29. As investors are moving to the sidelines while waiting for the FOMC to publish the minutes of its Jan. 29-30 meeting, the DXY is losing 0.22% on the day at 96.32.

Previewing the FOMC event, “How will a positive outcome to Brexit and US-China affect the Fed’s economic estimates and policy projections?  Will US economic growth ebb or accelerate if global growth levels off or improves?” questions FXStreet senior analyst Joseph Trevisani and adds: “Whether the FOMC minutes will  provide answers is questionable and historically unlikely but they will be scoured nonetheless.”  

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