EUR/USD consolidates gains under 1.100 after FOMC minutes

• FOMC minutes: Members see considerable risk to the outlook over the medium term.
• US dollar holds onto daily losses after minutes, DXY to post the lowest close since May 1.

The EUR/USD remained near 1.1000 following the release of the FOMC minutes. The euro is on its way to break a seven-week range, looking for further gains.

FOMC minutes ignored by market participants

As mostly expected, the minutes from the Fed’s latest meeting had no impact across financial markets. After Powell’s presentation on Tuesday, there was not much room for surprises. “Participants judged that the effects of the coronavirus outbreak and the ongoing public health crisis would continue to weigh heavily on economic activity, employment, and inflation in the near term and would pose considerable risks to the economic outlook over the medium term”, the document shows.

The minutes were not a game-changer, and the greenback holds onto losses. The DXY is falling 0.25% about to post the lowest close since May. The dollar remains under pressure as Wall Street keeps a bullish tone.

EUR/USD breaking range, still under 1.1000

The positive momentum for the euro is in place as EUR/USD attempts to consolidate near 1.1000. If the pair posts a daily close around current levels, it would be the highest since late March. The area around 1.1000 is the next critical resistance, and if EUR/USD breaks above it would likely extend gains. On the flip side, a retracement under 1.0960 would alleviate the bearish pressure. The next support emerges at 1.0895/1.0900.