The Euro remains “under the gun”. Overview for 08.07.2021

EURUSD remains under pressure; investors are very cautious. 

The major currency pair is as weak on Thursday as before. The current quote for the instrument is 1.1832.

One can’t say that the “greenback” got a lot of support from the FOMC Meeting Minutes published yesterday – more likely than not. However, market players still prefer the USD over other currencies because it has a stronger recovery potential in the next 6 months than the others. 

The document says that inflation is highly likely to go down after a recent surge, that’s why it’s not the thing to be concerned about. Several monetary policymakers agreed that their forecasts for inflation risks were too high.

The Fed members are sure that the parameters of economic activity and employment in the USA are improving (the latest mixed reports are disregarded, of course) and the progressing vaccination procedure will reduce possible risks for the country’s economy.

The document also says that the regulator should be more patient and reserved in assessing the current progress and announcing changes in the QE program. It’s quite reasonable as the market volatility is already very high.

As a result, the FOMC Meeting Minutes confirmed that the regulator doesn’t worry about inflation, hence is not planning to make any untimely moves.

Later today, a similar document will be published by the European Central Bank but investors are usually very calm about it.