EUR/USD putting 1.12 to the test

The shared currency is posting marginal losses on Thursday, sending EUR/USD to test the vicinity of 1.1200 the figure.

EUR/USD weaker on FOMC minutes

Spot has sharply retreated on Wednesday after market participants perceived the recent FOMC minutes as hawkish, with opinions amongst governors coinciding on the good health of the labour market and transitory weakness during the first quarter, while showing dissent regarding inflation and risks.

However, USD got extra legs after ‘most’ members considered ‘appropriate’ to hike in June as long as data accompany, accelerating the pair’s downside and putting back on the table a rate hike at the meeting next month.

Ahead in the session, the ECB will publish its Accounts while Initial Claims and the Philly Fed manufacturing gauge are expected in the US followed by the speech by Fed’s W.Dudley.

EUR/USD levels to watch

The pair is now retreating 0.02% at 1.1214 and a break below 1.1151 (100-day sma) would target 1.1142 (low Mar.24) en route to 1.1101 (200-day sma). On the other hand, the initial hurdle aligns at 1.1291 (55-day sma) followed by 1.1360 (20-day sma) and finally1.1448 (high May 11)