Dollar Higher Ahead Of The FOMC Minutes
TFI Markets | Aug 22, 2013 05:39AM ET
The dollar edged higher, though moderately, from a six month low against the euro and recovered some losses against the yen as traders take some profits off the table ahead of the FOMC minutes later today. The minutes will be released at 18:00 GMT and there is speculation that the Fed will begin reducing its $85 billion a month in asset purchases, giving some support to the dollar across the board. The US existing home sales came in stronger than expected at 5.39m from 5.15m but the market’s reaction was limited as traders are reluctant to open new positions ahead of the minute tonight. Meanwhile gbp/usd continues to gain as the UK data keep coming in better than expected.
Trade Idea
EURGBP Daily chart
The pair is in a downtrend and any rallies should be capped by 0.8575 resistance. Any approach there would be considered a selling opportunity targeting 0.8480.
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