The FOMC minutes failed to provide fresh hawkish evidence dollar bulls had hoped for and at the end of the trading day, there was nothing to gain. While the minutes confirmed the likelihood of a June rate hike, they have been casting doubts over the future trajectory for rate increases. Fed policy makers stated that they wanted more evidence that the recent economic slowdown is in fact transitory. Consequently, these statements were interpreted as slightly more dovish due to the lack of certainty to the policy pace. Following the disappointing minutes, the U.S. dollar gave up previous gains and pushed the euro and pound again higher in return.
The EUR/USD finally rose towards its recent resistance area around 1.1260. Once the 1.1270-level is broken to the upside the euro could climb towards 1.13 and 1.1350. On the bottom side, the 1.1160-support remains intact. There are no major economic reports scheduled for release today, so trading might be quiet.
The GBP/USD traded stable above 1.29 and every attempt to sell the pair below 1.2950 proved unsuccessful. Above 1.30 the pound may tend towards a renewed test of the 1.3040-resistance. A break of that level could result in a rise towards 1.3080. U.K. GDP figures are due for release at 8:30 UTC and if there is a surprise, the pound could react with a volatile price action.
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