Back
21 May 2015
Fed sees June rate hike as unlikely, go long EUR/USD – Growth Aces
FXStreet (Barcelona) - The Growth Aces Research Team comments on the FOMC Minutes released yesterday, and further remains bullish on EUR/USD, targeting 1.1450 levels.
Key Quotes
“The Fed released minutes of its April policy meeting yesterday. The central bank debated whether a slew of disappointing data, including weak consumer spending, signaled a temporary slump or evidence of a longer-lasting slowdown, with most participants agreeing economic growth would climb to a healthier pace and the labor market would strengthen. However, Federal Reserve officials believed it would be premature to hike interest rates in June.”
“Fed officials flagged a number of concerns including disappointment that falling oil prices did not spur consumer spending as much as had been hoped. The minutes largely reflected the Fed's April policy statement, which pointed to economic softness but described the slow growth as a consequence of transitory factors such as bad weather and a US port disruption.”
“Investors now will focus on a Yellen speech on Friday for signs of whether she believes the economy is back on track, or if she nods to the latest batch of weak data.”
“The EUR gained against the USD after the minutes from the Federal Reserve's latest meeting. Minutes confirmed the market expectations that the Fed will probably wait until late this year before raising interest rates.”
“The EUR/USD broke the 100-dma at 1.1156 and tested 21-dma at 1.1171. A close above these two important resistance levels will be a bullish signal. We keep our long position opened at 1.1140. Our target is 1.1450.”
“Resistance: 1.1247 (10-dma), 1.1326 (high May 19), 1.1449 (high May 18)”
“Support: 1.1051 (high on Mar 26), 1.0994 (50% of 1.0521-1.1468), 1.0960 (low Apr 29)”
“EUR/USD: long at 1.1140, target 1.1450, stop-loss 1.1045, risk factor *”
Key Quotes
“The Fed released minutes of its April policy meeting yesterday. The central bank debated whether a slew of disappointing data, including weak consumer spending, signaled a temporary slump or evidence of a longer-lasting slowdown, with most participants agreeing economic growth would climb to a healthier pace and the labor market would strengthen. However, Federal Reserve officials believed it would be premature to hike interest rates in June.”
“Fed officials flagged a number of concerns including disappointment that falling oil prices did not spur consumer spending as much as had been hoped. The minutes largely reflected the Fed's April policy statement, which pointed to economic softness but described the slow growth as a consequence of transitory factors such as bad weather and a US port disruption.”
“Investors now will focus on a Yellen speech on Friday for signs of whether she believes the economy is back on track, or if she nods to the latest batch of weak data.”
“The EUR gained against the USD after the minutes from the Federal Reserve's latest meeting. Minutes confirmed the market expectations that the Fed will probably wait until late this year before raising interest rates.”
“The EUR/USD broke the 100-dma at 1.1156 and tested 21-dma at 1.1171. A close above these two important resistance levels will be a bullish signal. We keep our long position opened at 1.1140. Our target is 1.1450.”
“Resistance: 1.1247 (10-dma), 1.1326 (high May 19), 1.1449 (high May 18)”
“Support: 1.1051 (high on Mar 26), 1.0994 (50% of 1.0521-1.1468), 1.0960 (low Apr 29)”
“EUR/USD: long at 1.1140, target 1.1450, stop-loss 1.1045, risk factor *”