EURUSD Recovers From Yesterday’s Loss Post Mixed Signal from FOMC Members Speech

The EURUSD pair continues to move in a range bound pattern during Asian market hours in today’s trading session. The pair is still moving around 1.17 price handle, however post hitting new monthly low the pair saw slight rebound which erased major portion of loss from yesterday’s trading session. This steep decline in EURUSD is mostly influenced by US dollar which continues to grow strong each day while EUR continues to mull over to lows owing to lack of proper bullish triggers. Switzerland and German markets were closed yesterday and there was no major release in macro calendar either. The current lack of momentum in pair to form a breakout in either side is mainly due trader’s cautious stance ahead of FOMC minutes.

EURUSD Recovers

During American market hours, 2018 Fed voting member Raphael Bostic, whose speech is often viewed by many to give away subtle clues of Fed’s actions that are yet to come mentioned yesterday during his speech that U.S. economy is close to meeting the Fed’s employment and inflation goals, with growth of around 2.5 percent expected this year. While he did mentioned earlier that he has base case for two additional rate increases this year, he failed to mention any information about rate hikes in near future during yesterday’s speech. Also another FOMC member Neel Kashkari during a Q&A session during early Asian market hours spoke on a dovish note where he mentioned that there job markets could turn sloppy in near future and wage growth has not picked up yet and so he wishes to allow economy to continue to strengthen at current pace.

This mixed outlook among FOMC members and a slowdown of yields in 10 and 2 year treasury notes caused EURUSD pair to erase losses from yesterday’s trading session. Economic Calendar remains light for both US and European market today across both European and US market hours. Traders are currently awaiting Preliminary PMI data and FOMC minutes update scheduled to release tomorrow before making a major bets. Expected support and resistance for the pairs are at 1.1730 / 1.1695 / 1.1660 and 1.1795 / 1.1820 / 1.1845 respectively.