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7:29 PM · 5 July 2023

EURUSD at daily lows after Fed Minutes 💲

Today's key publication was the protocol from the latest FOMC meeting held on June 13-14. During this meeting, the Fed decided to hold off on rate hikes, and the recently published minutes revealed that this decision was unanimous. Fed members, including Chairman Jerome Powell, have repeatedly indicated a strategy for further rate increases. This clear and calm communication prevented the market from being surprised by the release of the FOMC minutes, resulting in limited volatility in the major US indices and currency pairs. Currently, the US500 and US100 are experiencing slight losses after the initial lack of reaction.

The minutes confirmed that the rate hike pause is indeed a temporary break and not the end of the rate hike cycle, emphasizing that further rate increases will be necessary. While most bankers supported the pause, those members who favored a 25 basis point hike paid particular attention to the tight labor market and sustained strong momentum in the economy.

EURUSD pair, similar to Wall Street, is experiencing slight losses after the FOMC minutes. The main currency pair is currently testing an important support level on the H4 timeframe, which is defined by the 200-period exponential moving average (golden curve). Source: xStation 5.

US100 is experiencing slight losses shortly after the publication of the FOMC minutes on the H4 timeframe. Source: xStation 5.

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