THE USD STRENGTHENED AFTER FOMC MEETING MINUTES
The US dollar strengthened after yesterday’s publication of the FOMC meeting minutes. Improvements in inflation and from the labor market in America were noted. At the same time according to protocols, there is a high probability of cuts to the Fed’s balance sheet in 2017 that may also lead to the dollar strengthening.
We should note that the ECB’s official yesterday stressed that possible tightening of monetary policy in the Eurozone has not been discussed yet, which offsets some positive expectations for the bulls of the common currency. Today the course of trading may be impacted by data on unemployment claims and trade balance in the US at 12:30 GMT. We should also pay attention to news on the ISM non-manufacturing PMI in America for June at 14:00 GMT. Activity will be restrained by the expectation of tomorrow’s release of labor market statistics in the USA.
Currently the EURUSD quotes are trying to break through the upper limit of the local descending band and nearest resistance at 1.1350. In case of success we may see continued growth up to 1.1450 and 1.1500. On the other hand, the immediate goals if a decline resumes will be 1.1300 and 1.1200.