Euro Jumps to Two-week Highs After Fed Meeting Minutes Show Rate-hike Uncertainty
Oct, 12th 06:53
The euro soared to more-than-two-week highs against the U.S. dollar on Thursday after the greenback lost ground following the release of the minutes of the Federal Reserve’s September meeting.
The single currency added 0.1 percent to trade at $1.1871 – the highest level since September 25th. The pair EURUSD extended its upbeat rally to a fifth consecutive trading session. The euro has already been supported after Catalan leader Carles Puigdemont on Tuesday backed away from short of formal declaration of independence from Spain, which helped ease political tension in the region.
The demand for euro was also bolstered amidst expectations that the European Central Bank would announce its plan to wind back its 2.3 trillion euro bond-buying program at its policy meeting due later this month.
Meanwhile, Fed’s latest meeting’s minutes showed that several policymakers were still cautious about additional tightening, saying that further rate hikes should depend on upcoming inflation data.
On Friday, the Commerce Department is due to publish September inflation figures amidst expectations calling for a rise of 0.6% in consumer prices and an increase of 0.2% in the core inflation. Besides data on CPI, the Commerce Department at the same time will publish its figures on retail sales for September. Analysts forecast retail sales increased 1.6% and core sales added 0.3 percent last month.
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