- Euro trims gains versus the US dollar, remains strong against the pound.
- Key even ahead: FOMC minutes to be released at 18:00 GMT.
The EUR/USD rose earlier to 1.1915, the highest level in two weeks, but it failed to hold above 1.1900 and pulled back to 1.1880. Market participants await the release of the minutes of the latest Federal Reserve meeting.
A mixed dollar ahead of FOMC
The US dollar is posting mixed results on Wednesday. Lower US yields weighed on the greenback, with the 10-year yield at 1.623%, the lowest since March 26. The DXY is trading flat around 92.30. The rally of the EUR/USD is offset by the decline in GBP/USD and the gains of the dollar versus NZD, CAD, and AUD.
At 18:00 GMT, the Federal Reserve will release the minutes of its latest meeting. “The FOMC minutes will be scoured for clues to the logic, timing, and size of any change to the Treasury intervention. Any notice that the conditions for a reduction in bond purchases were discussed will be taken as indication that the time is approaching with commensurate market impact”, said FXStreet’s Senior Analyst Joseph Trevisani.
So far, the euro is among the top performers, with the EUR/GBP pair rising sharply and hitting weekly highs above 0.8650. The biggest gainer is the Swiss franc in Europe.
From a technical perspective, the EUR/USD continues to be biased to the upside, but the failure to hold above 1.1900 softened the positive tone. A break under 1.1875 should favor an extension of the move lower. The next support stands at 1.1835 and at 1.1800. If the pair rises back above 1.1900, the next level to watch is the resistance at 1.1930.