EUR/USD surges on FOMC minutes

The Euro benefited from Wednesday’s FOMC minutes as the US Dollar weakened on the release of the November meeting’s minutes.

The minutes have indicated that Fed policymakers agreed to slow the rate hikes, this news is weakening the US Dollar, so the Euro jumped against the US Dollar. At the time of writing, the EUR/USD pair is volatile, trading at around 1.0396, testing the 200-day Exponential Moving Average (EMA) at 1.0396.

Furthermore, policymakers expressed that monetary policy is approaching a “sufficiently restrictive” level, acknowledging that the Federal Funds rate peak is more important than the rate itself.

Regarding inflation, Fed policymakers agreed that there were few signs of easing inflationary pressures, though they emphasized that inflation risks were skewed to the upside.

Officials expressed a high level of uncertainty about the peak of the FFR. However, several predicted interest rates would peak at a higher level, as the Federal Reserve Chairman Jerome Powell expressed at the monetary policy press conference.