• Sat. Jun 15th, 2024

EUR/USD remains calm around 1.0850 ahead of FOMC Minutes

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  • EUR/USD halts its two days of losses ahead of FOMC Minutes on Wednesday.
  • Fed’s Susan Collins stated that progress toward interest rate adjustment will take longer.
  • The likelihood of surrounding the ECB extending the rate-cut cycle is providing support for the Euro.

EUR/USD remains stable ahead of the release of the Minutes from the Federal Open Market Committee (FOMC) meeting held on May 1, scheduled for Wednesday. The pair hovers around 1.0850 during the Asian trading session.

The Federal Reserve (Fed) maintains a cautious stance regarding inflation and the possibility of rate cuts in 2024. Federal Reserve Bank of Boston President Susan Collins, speaking at the event “Central Banking in the Post-Pandemic Financial System” on Wednesday, emphasized that progress toward interest rate adjustment will take longer and stressed the importance of patience as the right policy for the Fed.

Financial markets anticipate the first interest rate cut to occur in September at the earliest, with two reductions of a quarter percentage point each expected before the end of the year. According to the CME FedWatch Tool, the probability of the Federal Reserve implementing a 25 basis-point rate cut in September has slightly increased to 50.3%, compared to 49.6% a day ago.

On the Euro front, Eurostat released a Trade Balance of €24.1 billion in March, wider than the previous month’s €22.8 billion and surpassing market forecasts of €19.9 billion. This marked the largest trade surplus since December 2020.

The uncertainty surrounding the European Central Bank (ECB) extending the rate-cut cycle beyond June has intensified, providing support for the Euro. While ECB policymakers are comfortable with the idea of the central bank beginning to lower its three key interest rates starting from the June meeting, they are hesitant to commit to any further rate trajectory. Instead, they prefer to maintain a data-dependent approach.

EUR/USD

OVERVIEW
Today last price 1.0854
Today Daily Change 0.0000
Today Daily Change % 0.00
Today daily open 1.0854
TRENDS
Daily SMA20 1.0774
Daily SMA50 1.078
Daily SMA100 1.0817
Daily SMA200 1.0789
LEVELS
Previous Daily High 1.0875
Previous Daily Low 1.0843
Previous Weekly High 1.0895
Previous Weekly Low 1.0766
Previous Monthly High 1.0885
Previous Monthly Low 1.0601
Daily Fibonacci 38.2% 1.0855
Daily Fibonacci 61.8% 1.0862
Daily Pivot Point S1 1.0839
Daily Pivot Point S2 1.0825
Daily Pivot Point S3 1.0807
Daily Pivot Point R1 1.0871
Daily Pivot Point R2 1.0889
Daily Pivot Point R3 1.0903

 

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