‘The dollar fell while Treasuries advanced after minutes from the Federal Reserve’s latest meeting showed officials confident they can raise rates gradually amid little threat that near-term inflation will accelerate.’ – Jeremy Herron, Bloomberg
Pair’s Outlook
The common European currency surged against the US Dollar on Thursday morning, as the currency exchange rate continued the late Wednesday’s surge. The surge was initiated by the dovish FOMC meeting minutes, which caused the Greenback to fall all across the board. However, this occurred almost perfectly in the borders of a descending medium term channel, and the previous forecast of a decline of the currency pair is still in force. In fact, it is most likely that the pair will retreat once more to the weekly S1 at 1.0529 by the end of the day.
Traders’ Sentiment
Traders have not changed the proportions of their open positions, as 54% of SWFX traders remain bullish on the Euro. Meanwhile, 58% of trader set up orders are to buy the Buck.
