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20 May 2015
EUR/USD: Will the FOMC Minutes halt the USD Rally? – Growth Aces
FXStreet (Barcelona) - The Growth Aces Research Team believes that recent US fundamental data doesn’t justify a hawkish rhetoric from the FOMC Minutes today, as such they remain bullish on EUR/USD, targeting 1.1450 levels.
Key Quotes
“Chicago Fed President Charles Evans (voting this year) signalled that he saw early 2016 as a good time to act on rates. However, he said that substantially stronger wage growth would also be a strong indicator that could convince him of the need to raise rates earlier.”
“The USD scaled a three-week high against the EUR today. The market is focused on Fed minutes due to be published today 18:00 GMT. Any encouragement for the view the bank would wait until next year with rises in interest rates might halt the USD progress.”
“Headlines over Greece could be the reason for EUR weakening. The Greek government's parliamentary speaker said today Greece will not make a payment to the International Monetary Fund that falls due on June 5 if there is no deal with its creditors by then. Athens faces several payments totaling about EUR 1.5 billion to the IMF next month.”
“We went long on the EUR/USD at 1.1140 and set the stop-loss below the strong support area near 1.1050. The rate tested this area today, but then recovered.”
“Hawkish FOMC minutes today could be enough to break below the 1.1050, which should trigger stronger falls. However, recent weak macroeconomic data from the USA do not justify hawkish rhetoric”
“EUR/USD: long at 1.1140, target 1.1450, stop-loss 1.1045, risk factor *”
Key Quotes
“Chicago Fed President Charles Evans (voting this year) signalled that he saw early 2016 as a good time to act on rates. However, he said that substantially stronger wage growth would also be a strong indicator that could convince him of the need to raise rates earlier.”
“The USD scaled a three-week high against the EUR today. The market is focused on Fed minutes due to be published today 18:00 GMT. Any encouragement for the view the bank would wait until next year with rises in interest rates might halt the USD progress.”
“Headlines over Greece could be the reason for EUR weakening. The Greek government's parliamentary speaker said today Greece will not make a payment to the International Monetary Fund that falls due on June 5 if there is no deal with its creditors by then. Athens faces several payments totaling about EUR 1.5 billion to the IMF next month.”
“We went long on the EUR/USD at 1.1140 and set the stop-loss below the strong support area near 1.1050. The rate tested this area today, but then recovered.”
“Hawkish FOMC minutes today could be enough to break below the 1.1050, which should trigger stronger falls. However, recent weak macroeconomic data from the USA do not justify hawkish rhetoric”
“EUR/USD: long at 1.1140, target 1.1450, stop-loss 1.1045, risk factor *”