EUR/USD stays indecisive near mid-1.1900s ahead of FOMC Minutes

• EUR/USD pair is struggling to find direction on Wednesday.
• US Dollar Index stays flat near 92.30 ahead of FOMC Minutes.
• Core CPI in euro area remained unchanged at 1.2% in July as expected.

The EUR/USD pair is having a tough time making a decisive move in either direction on Wednesday as investors remain on the sidelines while waiting for the FOMC to publish the minutes of its July meeting. As of writing, the pair was up 0.12% on a daily basis at 1.1942. 

EUR pays no attention to EU data

Earlier in the day, the data published by the Eurostat showed that inflation in the euro area, as measured by the Consumer Price Index (CPI), stayed unchanged at 0.4% on a yearly basis in July. More importantly, the core CPI, which excludes volatile food and energy prices, remained steady at 1.2% for the same period. Nevertheless, these numbers had little to no impact on the shared currency’s performance against its rivals.

On the other hand, the US Dollar Index (DXY), which fell for the fifth straight day on Tuesday and renewed its lowest level in more than two years, stays relatively calm on Wednesday. Although the 10-year US Treasury bond yield is losing around 2% on the day, the DXY stays flat on the day at 92.30, failing to provide a directional clue to EUR/USD. 

Previewing the FOMC’s publication, “while speculative interest does not expect big surprises, it adopted the usual wait-and-see stance,” said FXStreet’s chief analyst Valeria Bednarik. “If anything, things policymakers acknowledged the situation remains the same, as improving inflation and employment data is being overshadowed by the fast spread of the coronavirus in the country, which limits the economic comeback.”

Technical levels to watch for