Forex – EUR/USD gains ahead of release of Fed minutes

0 – The euro rose against the dollar on Wednesday as investors waited on the sidelines for the release of the minutes from the Federal Reserve’s June policy meeting.

In U.S. trading, EUR/USD was up 0.17% at 1.3635, up from a session low of 1.3588 and off a high of 1.3643.

The pair was likely to find support at 1.3576, Monday’s low, and resistance at 1.3700, the high from July 1.

The Federal Reserve will release the minutes from its June policy meeting later Wednesday, and investors avoided the greenback ahead of time due to uncertainty as to what clues the U.S. central bank might unveil concerning the direction of monetary policy.

While the labor market has shown some signs of improvement, markets remain unclear if recovery has been strong enough to prompt the Fed to hint that it may begin raising interest rates sooner rather than later.

Last week, the Department of Labor reported that non-farm payrolls rose by 288,000 in June, easily surpassing expectations for an increase of 212,000, though recent data showing that the economy contracted by nearly 3% in the first quarter has cast doubts on the strength of U.S. recovery.

Elsewhere, the euro was up against the pound, with EUR/GBP up 0.17% at 0.7958, and up against the yen, with EUR/JPY up 0.27% at 138.65.

On Thursday in the euro zone, France is to publish a report on industrial production, while the European Central Bank is to publish its monthly bulletin.

Later Thursday, the U.S. is to release the weekly government report on initial jobless claims.

Source By Breaking News Website | BreakingNews.WS