Earlier today, the euro extended gains against the greenback as growing concerns that the Federal Reserve may keep interest rates on hold for longer pushed the USD Index lower. As a result, EUR/USD broke above the May high, hitting a fresh multi-month high. Are there any technical factors that could stop further rally?

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Yesterday, the USD Index dropped under the level of 96 as Wednesday’s minutes of the Federal Reserve’s latest meeting continued to weigh on investors’ sentiment. Additionally, the U.S. Department of Labor reported that the number of initial jobless claims in the week ending August 15 increased by 4,000, missing analysts’ expectations for a 1,000 drop. Thanks to these circumstances, the greenback extended losses earlier today, approaching the level of 95. What impact did this decline have on our six currency pairs?

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Yesterday’s minutes of the Federal Reserve’s latest meeting showed that although Fed officials believe that the economy is coming to the point where interest rates should move higher, the subdued inflation outlook in combination with weakness in the global economy could still pose a risk to the U.S. economic outlook. Thanks to this disappointing news, the USD Index reversed and declined sharply, pushing the euro higher. Will we see EUR/USD above 1.1200 in the coming days?

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Although the USD Index extended gains after the Commerce Department report (which showed that housing starts rose 0.2% to the highest level since October 2007) and climbed above 97 yesterday, the uncertainty around today’s minutes of the Fed’s July meeting pushed the greenback lower earlier today. What impact did this move have on EUR/USD, GBP/USD and USD/CAD?

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Earlier today, the U.S. currency moved little lower against major currencies as investors looked ahead to Wednesday’s minutes of the Federal Reserve’s July meeting. Will they receive more clues about Fed’s plans to hike short-term interest rates? Before we know the answer to this question, let’s examine the current picture of EUR/USD, USD/JPY and USD/CHF.

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