EURUSD gains after FOMC members' commentary 📌

Summary of Comments from Federal Reserve FOMC members:

Fed's Bowman suggests that higher interest rates might be necessary to maintain low and stable inflation, highlighting uncertainties in supply-side factors and risks from energy prices and service sector consumption. She advocates for rate hikes if inflation progress stalls and emphasizes the importance of data-driven policy decisions.

Fed's Waller indicates that if inflation consistently falls, there might be scope to lower interest rates. He sees moderate GDP growth and anticipates a cooling economy, which could lead to moderated demand as intended by the Fed. Waller is optimistic about achieving a smooth economic adjustment but acknowledges the risk of unforeseen shocks.

Fed's Goolsbee notes progress in reducing inflation, particularly outside of food prices, but acknowledges that it hasn't reached the target yet. Waller stresses the need for improvements in services inflation to achieve overall inflation targets and remains cautious about the sufficiency of the Fed's current measures, emphasizing the need to monitor upcoming data. He notes signs of moderating economic growth but recognizes that inflation remains high and the labor market tight, underscoring the ongoing challenge for monetary policy.

EURUSD break above a key resistance zone around the convergence of the lower limit of the last upward channel and the 61.8% Fibonacci retracement of the last downward movement (mid-July 2023). Source: xStation 5