The USD enters its fifth consecutive day of declines and the US Dollar index (DXY) is currently trading at 94.60, at the time of writing. Minutes of the July meeting released yesterday evening showed that the majority of the FOMC members were not in favour of a near term rate hike.
Overall the feeling one got from the minutes was that the generic outlook for the US economy remained positive, but short term slowdowns may not warrant a near term hike yet.
EURUSD already made fresh highs at 1.1328 this morning but backed down to 1.1305 at the time of writing. Next intraday hurdles to the upside are 1.1322 and 1.1356 and if USD weakness continues to persist it is likely that the currency pair attempts higher.
Today’s economic docket will deliver the latest data for EZ July CPI, US weekly jobless claims and the Philly Fed index.
Overall sentiment was mostly positive on the equity front, with the major US equity indices closing in positive yesterday, on the back of the Fed Minutes. Asia as well was mostly positive, although the Japanes Nikkei stood out as a loser on the back of persistent JPY strength.
