The euro was still well above $ 1.22 on Wednesday, but Rabobank estimates that the higher potential for the European currency is limited.
“We think the dollar is preparing for a correction after the recent declines”, Rabobank analyst told ABM Financial News on Wednesday. “Should the minutes of the Federal Reserve provide insight into an internal discussion on inflation risks and possible consequences for monetary policy, it is likely that this will give a reaction in the dollar rate”.
After the minutes, attention in the foreign exchange markets shifts to next Friday’s purchasing manager indices. “These should show a further recovery of the industrial and service sectors of the various countries,” said the market analyst, who advised to be alert to the increasing coronavirus infections in Asia, such as Taiwan.
Japan’s industrial output in March was 3.4 percent higher in a revised measurement against a previously reported style of 4.0 percent.
UK consumer prices rose 1.6 per cent year-on-year in april more than they all did in March, while producer prices resolved 3.9 per cent year-on-year in the same month, which was significantly more than the 2.3 per cent style in March. Both increases were above expectations.
From the euro zone, inflation in April was set at 0.6 percent on a monthly basis and 1.6 percent on an annual basis. These percentages were in line with expectations.
The financial stability of the euro area remains significant, the European Central Bank concluded on Wednesday in the Financial Stability Review in May.
In the United States, only weekly oil stocks are scheduled for Wednesday. The minutes of the most recent Fed meeting will follow this evening.
Speakers for today are only the president of the Federal Reserve of St. Louis.Louis James Bullard and the vice-chairman of the monetary policy body Randal Quarles.
The euro was down 0.1 percent on $ 1.2214 on Wednesday. The European currency recorded unchanged at £ 0.8617. The British pound lost 0.1 percent on Wednesday, scoring at $ 1.4170. The dollar was 0.2 percent higher at 6.4367 Chinese yuan. Today, the dollar rose 0.2 percent and recorded at 109.1465 yen.