The U.S dollar was smashed across the board yesterday following a dovish FOMC minutes last night. The minutes of the 31 Oct-1 Nov FOMC meeting showed the Fed members’ worries about inflation in the United States may remain below 2% for longer than currently expected. The Federal Reserve’s waning confidence on inflation has possibly forced investors to question a supposedly done deal December rate hike, triggering a broad-based USD sell-off.

 

The U.S dollar was smashed across the board yesterday following a dovish FOMC minutes last night. The minutes of the 31 Oct-1 Nov FOMC meeting showed the Fed members’ worries about inflation in the United States may remain below 2% for longer than currently expected. The Federal Reserve’s waning confidence on inflation has possibly forced investors to question a supposedly done deal December rate hike, triggering a broad-based USD sell-off.

 

EUR/USD technical outlook

 

The Single currency rallied sharply last night from a low of $1.1735 to a high of $1.1835 this morning boosted by a decline in the greenback. On the hourly chart, the current chart pattern suggests that the corrective decline on the EUR/USD may have ended at $1.1552 on 7^th of NOV and that the upward trend might resume in the medium term with possible target to $1.2025 followed by $1.2221. On the downside, a breach of support at $1.1774 would shift risk in favour of a drop to $1.1751 and $1.1712.

 

 

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