The EURUSD pair managed to erase most of today's losses following fresh comments from Fed Kashkari. Minneapolis Federal Reserve Bank President said that the Fed moving in 75 basis point increments is very aggressive and played down the suggestion the central bank is not moving aggressively. In his opinion, Fed will raise rates to possibly 4.5% and then remain there for some time as it assesses the economy.
Other comments:
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We haven't seen much evidence that underlying inflation is easing.
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A strong dollar is making US inflation a little less pricey.
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There are some evidence that supply chains are improving, though it is sector specific.
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There is a lot of uncertainty about the fundamentals of the US economy.
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By raising rates aggressively but not excessively, it allows for an assessment of the economy.
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A housing downturn is possible, but not a hard crash.
EURUSD bounced off the local support at 0.9670 level, however buyers struggle to push the price above the earlier broken lower limit of the local ascending channel. Source: xStation5
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