EURUSD rises on dovish Fed.
EURUSD under bullish pressure today on weaker dollar after U.S. Federal Reserve official Chair Jerome Powell reaffirmed tighter monetary policy was still soon to be implemented after a hawkish turn by the Fed last week caught Forex markets off guard. The policymakers have since softened their stance with Powell and New York Fed President John Williams warning the economic recovery requires more time before raising interest rates. “We will not raise interest rates pre-emptively because we fear the possible onset of inflation,” Powell said on Tuesday “We will wait for evidence of actual inflation or other imbalances.” The pair is also driven on moderate euro optimism after German and Eurozone Preliminary PMIs beat expectation.
Next resistance to watch – 1.200
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