- US Dollar uncharged after the release of the FOMC minutes, EUR/USD remains flat.
- FOMC minutes showed a debate emerging on when to stop the easing cycle.
The EUR/USD pair dropped modestly following the release of the FOMC minutes. The pair held within the recent range moving between 1.0985 and 1.0970, consolidating a small gain for the day.
According to the minutes from the latest FOMC meeting, when the central bank cut rates for the second time since 2008, many officials cited inflation in justifying the interest rate cut. Also, they showed a debate emerging about when to end policy easing. The minutes reflected a division at the FOMC. At the September meeting, three members voted against the decision, one asking for a bigger cut, and two members favored no change.
From a technical perspective, the EUR/USD pair continues to consolidate. The impact so far from the minutes has been minor. On the upside, the 1.1000 area remains a critical resistance that if broken could trigger more gains in the Euro.
As of writing, trades at 1.0970/76, above the 20-hour moving average, a modest drop could trigger some intraday bearish pressure. Only a slide below 1.0940 would point to more losses.