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EUR/USD remains supportive after FOMC meeting minutes – Westpac

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The latest note by Westpac mentions that:

“The USD is settling into a steadier day-to-day bear trend and downside likely extends into the mid-Dec FOMC. The FOMC minutes showed staff PCE projections for end-2023 coming in lower again, a pointer to probable downward revisions in the FOMC’s Dec projections. That could bleed into 2024 and may well push several dots lower for that year too. EUR can see more yield support on the Eurozone side too, with ECB officials continuing to push back on market pricing for 2024 rate cuts (first cut priced by April/June). EUR/USD has not looked back since last week’s US Oct CPI and our 1.0790 long entry level has gone unfilled. We lift the entry to 1.0820, targeting 1.1060, with a stop at 1.0740.”

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