The EURUSD pair slipped 0.28% to 1.1790 on Wednesday, July 7. Prior to the release of minutes from the FOMC’s June 15-16 monetary policy meeting, the euro rate slid to 1.1781. After the release, the euro strengthened to 1.1821. The minutes brought no surprises. The regulator made it abundantly clear that inflationary pressures are not a concern, thus reassuring the markets. Some members considered the likelihood that the conditions for dialing back asset purchases would be met earlier than previously thought. The plan is to start curbing the purchase of mortgage-backed securities. The minutes are posted on the Federal Reserve’s website.
Given that the US dollar index did not decline, this means investors are not inclined to believe the regulator’s narrative regarding interest rates. The rates hike issue remains in the spotlight in Q3.
Today’s macro agenda (GMT+3)
- 14:30 Eurozone: ECB monetary policy meeting (June)
- 15:15 Canada: housing starts (June)
- 15:30 US: initial jobless claims, 17:30: EIA weekly petroleum status report
- 21:00 US: consumer credit change (May)