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  • EUR/USD holds to modest losses, remains in a small range.  
  • Market participants ignore FOMC minutes, DXY unchanged.  

The EUR/USD pair continued to trade around 1.1065 after the Federal Reserve (Fed) released the minutes of its latest meeting. Previously the euro spiked to 1.1081 but failed to break clearly above 1.1080 and pulled back modestly.  

Financial markets remain quiet even after the FOMC minutes. Since the beginning of the week, the EUR/USD is moving in a 40-pip range.  

According to the minutes, most members judged the low level of interest rates as appropriate barring a ‘material’ reassessment of the outlook. Most policymakers said rate cut was warranted due to global weakness seen in growth. Some favored keeping rates steady and argued outlook was favorable and inflation expected to rise.  The document showed they discussed about the risks to the economic outlook remained tilted to the downside.  

The US Dollar Index remains unchanged, consolidating modest gains around 98.00. US yield also kept their previous levels and equity prices in Wall Street hold to losses. Market participants ignored Fed’s minutes completely. According to the CME Fed Watch Tool, current market pricing shows practically no probability or a rate cut in December.  

EUR/USD levels to watch