Later, traders will get an opportunity to look at another hints, understatements, clues, and insights from today's Federal Open Market Committee (FOMC) meeting. The Fed is expected to clarify if it wants to raise the key interest rate at least twice this year. However, the global economic headwinds and internal slowdown are pushing back any potential date of tightening monetary policy cycle. Please notice as the Fed had released its last minutes three weeks ago, the global situation changed dramatically, with a possible Chinese stock market crash and Greece technical default leading the way. This is why the FOMC minutes might be out of date already as the US data for June were horrible and global situation has chanced a lot as well. The preached rate hike in the month of September by most hawkish Fed Governor Jerome Powell might not be seen this year at all.
FOMC meeting minutes for the month of June are scheduled for release at 6pm GMT today. High market volatility is expected during the time of realse is expected and the general idea to trade EUR/USD is as follows:
- dovish tone - EUR/USD should remain range bounded between the levels of 1.1120 - 1.0914
- hawkish tone - EUR/USD should make a new low below the level of 1.0914.