EUR/USD tumbles after Fed minutes obliterate December easing bets
EUR/USD drops over 0.49% on Wednesday as the minutes of the Federal Reserve hinted the central bank could skip an interest rate cut at the December meeting, according to October’s meeting minutes. The pair trades at 1.1524, after hitting a daily low shy of 1.1600.
Euro tumbles nearly 0.5% after FOMC minutes reveal most Fed officials oppose easing at next month’s meeting
The minutes showed the Fed is split, with most of the members opposing a December rate cut, at the October 28-29 meeting. The chances of a rate cut fell from around 42% to 33%, revealed the FedWatch Tool.
Across the Atlantic, the Eurozone Harmonized Index of Consumer Prices (HICP) dipped from 2.2% to 2.1% in September, close to the European Central Bank (ECB) 2% inflation target. Core HICP was 2.4% YoY for the same period.
Ahead the US economic docket will feature US jobs data, led by Nonfarm Payroll figures, Initial Jobless Claims and Fed speakers. In Europe, the schedule is light, with traders eyeing Eurozone Consumer Confidence.
Daily market movers: Fed minutes weigh on the Euro
Federal Reserve minutes revealed that “Many participants were in favor of lowering the target range for the federal funds rate,” but some would have been satisfied with keeping rates unchanged. The minutes showed that the Committee is concerned about inflation and that further easing “could add to the risk of higher inflation becoming entrenched.
Source: Fxstreet
