EUR/USD Set To Tick Higher, Eying Catalyst From Fed

For the Fed minutes and sessions ahead, the pair could be based here and result in a higher correction from support. Any Ultra Hawkish remarks by FOMC minutes will likely support the US dollar and potentially send the euro below 1.0640 towards a daily 61.8% ratio down at 1.0615.

The US dollar is higher versus major currencies early on Wednesday ahead of Federal Reserve minutes that are released at the top of the hour. The board members that have spoken this week have been less hawkish if not slightly dovish in terms of how fast rates should be increased later in the year. However, an increase of 50 basis points remains the expected outcome at the June 14-15 meeting and the minutes will be important for central bank observers seeking confirmation of that as well as an insight into subsequent meetings.

Nevertheless, the dovishness from some officials, coupled with European Central Bank President Christine Lagarde suggesting in a blog that the first ECB rate hike could occur in July, has pulled the rug from under the US dollar bulls and enabled the euro to correct in a significant manner toward a key zone.