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  • US Dollar mixed across the board ahead of the FOMC minutes.  
  • Euro fails to hold to gains versus US Dollar, remains on consolidation mode.  

The EUR/USD pair peaked today at 1.1179 during the European session but then pulled back, moving to the 1.1150 area. As of writing trades at 1.1155, flat for the day. Traders await the release of the minutes from the latest meeting of the Federal Reserve.  

At that meeting (Apr 30/May 1) the Fed kept rates unchanged. Most analysts expected a cautious Fed in the minutes. So, for the minutes to move markets, they would have to move away from the cautious stance, to an even more cautious (EUR/USD positive) or offer a hawkish twist, signaling that rates could rise again sometime over the current year (negative).  

The pair awaits the minutes trading steady, holding in the 50-pips range that has been in place since last Thursday. The low volatility environment could be challenged with the minutes however, many analysts consider that the impact of the Fed’s document should be limited.  

To the upside, if the euro manages to move above and hold away from 1.1170 it could gain some momentum and even approach 1.1200. On the flip side, in line with the primary trend, a break under 1.1140 could leave the 2019 low at 1.1110 exposed.