THE FOMC MINUTES MAY CAUSE VOLATILITY GROWTH TONIGHT
The EURUSD quotes are consolidating near 1.1350. Trader activity has been low during the Independence Day celebrations in the US yesterday. Today American investors will return to the markets and we may see increased volatility, which is typical after a period of movement within a narrow range.
The trigger for sharp movements may come from the publication of the FOMC meeting minutes at 18:00 GMT. Hints about one more rate hike by the Fed in 2017 may support the bears and in this case immediate goals will be at 1.1300 and 1.1200. The influence of the mood of traders today will also come from the release of statistics from the Eurozone on final services PMI in June and retail sales in May at 09:00 GMT.
In the US traders will be paying attention to news on factory orders for May at 14:00 GMT. Currently the quotes are moving along the upper limit of the local descending channel and its breaking may lead to continued growth up to 1.1400 and 1.1450. Expectations about shifts in monetary policies of the Fed and ECB will remain the main drivers for further moves of the pair.