EUR/USD consolidated its losses and stabilized. Is it ready for another fall? Here is the view from BTMU:
Here is their view, courtesy of eFXdata:
BTMU Research discusses EUR/USD outlook and sees a scope for the cross to test 1.1650 as it continues to trade heavily against after breaking below the technical support at the 1.18000-level.
“The US dollar is continuing to benefit from the ongoing rise in US yields with the 10-year UST yield attempting to sustain a break above 3.00%,†BTMU argues.
However, BTMU thinks that this week’s FOMC minutes could take some of the USD recent gains.
“The release of the latest FOMC minutes will be scrutinized closely for further insight into the Fed’s decision to emphasize their “symmetric†inflation goal at their last policy meeting. It was widely interpreted as signaling that the Fed is willing to tolerate some modest inflation overshoot. If correct, the Fed is signaling that there is a high hurdle to speed up current plans for further gradual rate hikes in the coming years. It should help to dampen upside risks for the US dollar,†BTMU adds.
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