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EUR/USD: Fed To Publish Meeting Minutes

All eyes are on the realease of the Federal Reserve’s October meeting minutes. On the other side, as we witnessed earlier this week, Mario Draghi, the ECB’s President, announced that policymakers will do their best to protect the European economy.

Draghi also added that the ECB is ready and willing to take any needed “unconventional measures” in order to ensure an economic recovery.

This might involve purchasing sovereign debts, a monetary policy tool known as Quantitative Easing. It aims to suppress long-term borrowing costs to spur economic recovery. It generally leads to a weakening of paper currencies and boosts stock prices.

The ECB’s current stimulus program includes purchases of asset-backed securities and covered bonds.

Japan has sunk into recession. As a result Europe might apply extreme measures to help its economy. The U.S. is also worried about global growth; announcing that they will not be a victim of slow global growth.

The markets may be volatile today as some key US figures are scheduled for release. The metting minutes may shed more light on when the Fed will increase interest rates.

  

Here are the major Resistance (R) & Support (S) levels of the EUR/USD:

S2 1.2354

S1 1.2408

Pivot Point 1.2505

R1 1.2610

R2 1.2670

 
 

 
 
 
 

 
 

 
 

 
 

 
 

 
 

As for Japan, the Bank of Japan (BOJ) press conference focused on the factors that affected the most recent interest rate decision, the overall economic outlook and inflation; and offered insights about future monetary policy decisions.

Moving to the UK, the monetary policy meeting minutes are scheduled for release. They are a detailed record of the Bank of England’s policy setting meeting; containing in-depth insights about the economic conditions that influenced the interest rate decision. The breakdown of the MPC members’ interest rate votes tends to be the most important part of the minutes.

As for the U.S., the Building Permits announcement will be released; measuring the change in the number of new building permits issued by the government. Building permits are a key indicator of demand in the housing market.

  • Forecast: 1.040 M 
  • Previous: 1.018 M

A higher than expected reading should be taken as positive for the USD, while a lower than expected reading should be taken as negative for the USD.

The Federal Open Market Committee (FOMC) meeting minutes will also be released. They are a detailed record of the committee’s policy-setting meeting held about two weeks earlier. The minutes offer detailed insights into the FOMC’s stance on monetary policy, so currency traders carefully examine them for clues regarding the outcome of future interest rate decisions.

We wish you luck in your trading activities. For any further assistance, please do not hesitate to contact us at  [email protected]  

Disclaimer The prices and news mentioned in this outlook are absolutely no guarantee of future market performance. Financial markets can move in either direction causing profits to be made or complete losses to be incurred by the trader. Each trader must decide for themselves what their risk appetite is and ensure that correct risk management procedures are in place before placing any trades. Engaging in CFDs or Spot FX carries a high risk to your capital. You should not engage in this form of investing unless you understand the nature of the Transaction you are entering into and the true extent of your exposure to the risk of loss. Your profit and loss will vary according to the extent of the fluctuations in the price of the underlying markets on which the trade is based.

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