USD expects to increase the rate due to FOMC
The US dollar is trying to restore the environment by demonstrating unstable dynamics against its major competitors. All expectations around the US currency are still subdued, as investors are quiet on the edge of key events in the trader’s calendar: the minutes of FOMC meeting and the Nonfarm Payrolls employment report.
The rate of the EUR/USD currency pair didn’t manage to make a noticeable breakthrough over the 20-DMA and stayed below the barrier of 1.17. The price started its downward movement, even stronger than expected. So, the euro zone’s PMI service failed to show a bullish pair growth. This supports the idea that all the sentiment around the USD is still the most important driving force of the pair.
The decreasing pressure on the European currency could intensify, if the release of the Fed’s minutes gives additional venomous ideas. The danger for the dollar is posed by the Fed’s cautious tone in the situation of growing trade tensions between the US and other countries. The basic outcome is as follows: EUR/USD pair will keep losing ground in the upcoming few days, but then go to the level of 1.16 once more.