The FOMC minutes is up today!
Will the report take back most of EUR/USD’s intraday gains?
Before moving on, ICYMI, yesterday’s watchlist checked out AUD/USD’s 1-hour uptrend after China printed its PMI reports. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
UK fresh food prices surge 15% in year to December: BRC
Germany’s import prices up by 14.5% y/y, the lowest increase since June 2021
Swiss inflation slows to 2.8% in December before likely jump in JanuaryFrench inflation unexpectedly slows from 7.1% to 6.7% y/y in December
Italy’s services sector broadly stable in December- PMI
Spain’s services PMI shows further modest growth in December as sales rise slightly
BOJ Kuroda: keep easy money to meet inflation target with wage growth
Dollar eases ahead of FOMC minutes
Upcoming Potential Catalysts on the Forex Economic Calendar:
Eurozone’s final services PMI at 9:00 am GMT
U.K.’s individual lending and mortgage approvals at 9:30 am GMT
U.S. ISM manufacturing PMI at 3:00 pm GMT
U.S. JOLTS job openings at 3:00 pm GMT
U.S. FOMC meeting minutes at 7:00 pm GMT
China’s Caixin services PMI at 1:45 am GMT (Jan 5)
Use our new Currency Heat Map to quickly see a visual overview of the forex market’s price action! 🔥 🗺️
What to Watch: EUR/USD
EUR/USD 1-hour Forex Chart by TradingView
In case you missed it, traders are taking risks as they come back from their New Year holidays.
EUR/USD, which dipped to a low of 1.0520, is now 100 pips higher and closer to a mid-range level that the pair spent time in through December.
Is EUR/USD ready for more gains? Or will the mid-range resistance and 1.0700 previous high keep the bulls away?Today’s FOMC meeting minutes might provide more clues.
Fotex traders who will price in the Fed raising its interest rates by a few more times this year might drag EUR/USD back to its January lows.
If the risk-friendly economic environment extends beyond the FOMC report, however, EUR/USD could revisit its 1.0700 highs and head for the 1.0800 psychological handle.
What do you think? Which way will EUR/USD go?
