EUR/USD Goes Defensive As FOMC Minutes Awaited

An improvement in the market’s sentiment despite the looming Covid woes from China and mixed concerns surrounding the US-China relations help the pair to register the first daily gain in four on Tuesday.

EUR/USD buyers are relaxing ahead of Wednesday that is literally eventful. The EUR/USD pair has steadied around 1.0300 during Wednesday’s Asian session after snapping three-day downtrend the previous day.

Firmer risk appetite has allowed the pair buyers to resist against the sellers the previous day. However, the data/events awaited today would require a more cautious mood. The ECB’s Robert Holzmann supported calls for a third straight 75 basis points rate increase for the December monetary policy meeting.

On the US front, Fed’s Esther George said, “We could well take a higher interest rate for some time to convince households to hold on to savings.” Richmond Fed Manufacturing Index improved to -9 for November versus -10 prior whereas Eurozone Consumer Confidence also rose to -23.9 for the said month compared to -26 expected and -27.5 prior.