EUR/USD hits a daily high after FOMC minutes

The EUR/USD rallied close to 50 pips after FOMC Minutes. Fed members agreed to hike 75 bps in July. Fed members acknowledge they would slow the pace of tightening at “some point.”

The EUR/USD jumped during the last hour as the minutes lifted the Euro near the highs of the day, reached earlier, at 1.0202, though stabilized around the highs 1.0190s. At the time of writing, the EUR/USD is trading at 1.0190.

The US Fed revealed in its minutes that all the participants agreed to hike rates by 75 bps, while many of them saw the Fed could tighten more if necessary. Fed officials added that future hikes would depend on incoming data.

The EUR/USD rallied sharply, as shown by the 5-minute chart. Even though the pair dipped towards 1.0185, buying pressure lifted the pair towards the daily high at 1.0202.

Market participants’ interpretation of the minutes is perceived as dovish, despite pushing back efforts by Fed speakers in the last couple of weeks.