Other economic highlights for today (08/22/2018)

We get UK’s Inflation hearings (in the European session) and we get Canada’s retail sales growth rates and the existing home sales figure (in the American session).

Also, the FOMC meeting minutes will be released and you should pay attention on the EIA weekly crude oil inventories figure, since it could move the oil market.

The decline continues for the US dollar

The US dollar continued to fall. You should pay attention to the fact that the insignificant political instability of the US with the former collaborators of President Trump who faced judicial problems did not help the American banker. FOMC meeting can be the next milestones in the dollar’s situation. If there was a positive signal from the negotiations on improving trade relations between the US and China, the USD could further weaken.

EUR/USD increased resistance level 1.1537. The pair has even increased rapidly the growth trend,. The couple may prove to be vulnerable to the release of the FOMC meeting. We could break the resistance level 1.1623 and target the 1.1675 barrier of resistance. And on the other side, we could see that they interrupt the level of support 1.1537 and target the obstacle to support 1.1482.

FOMC interest rate decision

Late in the American session the FOMC is expected to announce its interest rate decision. The bank is widely expected to remain on hold and currently Feds Funds Futures imply a probability of 96.37% for that scenario. As the bank is expected to remain on hold, market focus may shift to the accompanying statement which may contain comments about the high inflation rate, the strong GDP growth rate and the low unemployment level. A number of analysts seek a clear message for the possible 2 future rate hikes in 2018, especially after recent comments made by US president Trump. A neutral to hawkish tone in the accompanying statement could support USD, while a neutral to dovish tone may weaken it.

EUR/USD continued its sideways movement yesterday testing the 1.1745 resistance line and correcting lower later on. The pair could experience some bearish tendencies today should the FOMC meeting favor the USD side. Should the bulls take over the market we could see the pair breaking the 1.1745 resistance line. On the other hand should the bears take over we could see the pair breaking the 1.1640 support line and aim for the 1.1580 support barrier.