The decline of EUR/USD gained momentum following the publication of the Federal Reserve minutes.

On Thursday, the major currency pair, EUR/USD, continued to face downward pressure, with the current quote at 1.0840. The US dollar found support from the minutes released by the Federal Reserve, summarizing their most recent meeting held two weeks ago.

Several members of the monetary committee expressed readiness to support a 25-basis point interest rate hike in July. Additionally, it was acknowledged that the employment market remains tight, and the US economy continues to grow steadily. Furthermore, there are indications of a downward trend in inflation towards the targeted 2% level.

However, looking ahead, the Federal Reserve is expected to slow down the pace of interest rate hikes in the long term. The Fed has identified potential signals of an economic recession and aims to prevent such a scenario.

Based on the CME FedWatch data, there is an 89% probability of a 25-basis point interest rate increase at the July meeting, which further bolsters the US dollar.

Today, the US will begin releasing labor market statistics for June, with particular attention on the private sector employment data from ADP.

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