The US Dollar was on the backfoot during Thursday trading in London after the US central bank was seen as unexpectedly dovish in its latest policy minutes. Expectations that the Fed is likely to raise rates in the near term have diminished to some extent which left the common currency Euro in a good position to edge back towards the recently struck 6½ month peak. According to the minutes, the Fed’s FOMC believes that until there is clear evidence that the recent slowdown of the US economy is nothing more than fleeting, they should hold off on a rate hike. The cautionary stance is also likely a product of the growing concerns over the Trump administration.
As reported at 11:09 am (BST) in London, the GBP/USD is trading lower at $1.2947, down 0.18, establishing a new low for the session. The USD/JPY is up 0.26% to trade at 111.856 Yen, off the session peak set at 111.900 Yen, while the session trough was at 111.500 Yen.
Euro Looking for Momentum
In the Eurozone, the Euro continues to be relatively bullish as upbeat data from the Eurozone and the waning of political worries from France are now in the past. Currency analysts believe that the common currency has the momentum to charge past the $1.1300 level against the Dollar, with a possible tick towards the $1.1500 level. Currently, the EUR/USD is trading flat at $1.1215.