Wednesday, November 18, 2015

EUR/USD testing multi-month lows, FOMC minutes in focus

FXStreet (Mumbai) - The shared currency is seen posting minor losses against its American counterpart heading into the mid-Asian trades, keeping EUR/USD depressed near 1.0640 region.

All eyes on FOMC minutes

The EUR/USD pair trades marginally lower at 1.0635 in close proximity to the seven-month lows reached at 1.0631 on Tuesday. The selling pressure on the EUR persists, now pushing EUR/USD towards 1.06 handle, the lowest levels since mid-April.

The focus now remains on the Fed Oct 28 meeting
minutes, with markets expecting the minutes to double confirm a Dec Fed lift-off, after the latest inflation data from the US almost sealed in a Dec Fed hike deal. The US CPI for Oct came in line with forecasts, rebounding 0.2% m/m.

The major trades near multi-month low as the growing monetary policy divergence between both continents has become more prominent now. The ECB is expected to expand its QE program or cut deposit rates in wake of the recent multiple terror attacks on Paris.

Amid lack of economic news for the EUR in the session ahead, markets will track the sentiment on the equities ahead of the much-awaited FOMC minutes.

EUR/USD Technical Levels

The pair trades near seven-month lows posted at 1.0631, with the immediate support seen at 1.0600 (round number). Selling pressure will intensify below the last, dragging the pair towards 1.0519 (April Lows). While to upside, the next hurdle in sight is located at 1.0647/50 (Today’s High/ psychological levels) from there to 1.0691 (Nov 17 High).
For more information, read our latest forex news.

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