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EUR/USD remains in session highs near 1.1350

FXStreet (Edinburgh) - The bid tone remains firm around the single currency on Friday, with EUR/USD now hovering over the 1.1340 area, near session tops.

EUR/USD firmer post-FOMC

The unexpected dovish tone from the FOMC meeting on Thursday keeps weighing on the dollar at the end of the week, sending spot to fresh 3-week peaks around 1.1350.

The Committee showed concerns regarding the inflation outlook in the US economy, while it acknowledged that events overseas - particularly from China and the rest of the EM space - could impact on the US growth prospects.

EUR/USD levels to watch

As of writing the pair is advancing 0.60% at 1.1344 and a breakout of 1.1400 (psychological level) would target 1.1460 (monthly high Sep.18) and then 1.1714 (high post-PBoC move Aug.24). On the flip side, the immediate support lines up at 1.1224 (55-d sma) followed by 1.1174 (2-month up trend) and then 1.1107 (monthly low Sep.23).

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Lee Hardman, Currency Analyst at MUFG, suggest that the release of the latest FOMC minutes from their meeting in September has provided some reassurance to the market that the pace of tightening will be more gradual although offered little fresh policy insight.
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BoE’s Carney getting hawkish on inflation front – Investec

Research Team at Investec, note that BoE governor Carney was slightly more hawkish on the inflation outlook yesterday, noting that ‘importantly we are seeing building wage pressures’ and that ‘you can achieve your inflation target even in the face of some very large external forces’.
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