EUR/USD: a muted reaction to benign FOMC minutes for the euro

Currently, EUR/USD is trading at 1.0554, down -0.66% on the day, having posted a daily high at 1.0645 and low at 1.0526.

The FOMC minutes did not tell us anything we did not already know while most participants said that a rate hike could be appropriate relatively soon so long as data cooperates and some members said this could occur at the next meeting.

There were some disagreements on the  impact of inflation while it was noted that inflation is rising and the FOMC see this as a good development, but they are not sure it will last. There was some mention of uncertainty about government policy and that is why business investment has been slow according to the board. Brexit and EU banking situation is also an uncertainty and a concern. There was also talk of the Fed's balance sheet and a smaller balance sheet will be preferable if rates start to rise. All in all, nothing here that has confirmed anything and the Fed funds rate is under pressure and the dollar is unchanged. 

Don't believe the hype, and get real: the Fed will not hike in December and here is why ...

EUR/USD levels

Spot is presently trading at 1.0554, and next resistance can be seen at 1.0567 (Annual Low), 1.0584 (Yesterday's Low), 1.0586 (Daily Classic S1), 1.0591 (Hourly 20 EMA) and 1.0593 (Monthly Low).Next support to the downside can be found at 1.0547 (Daily Classic S2), 1.0526 (Daily Low), 1.0510 (Daily Classic S3), 1.0496 (3 Year Low) and 1.0496 (5 Year Low).