EUR/USD sinks to 1.1730 on ECB minutes

The single currency has given away its initial gains on Thursday and is now forcing EUR/USD to re-visit the 1.1740/30 band, or daily lows.

EUR/USD offered on ECB

The pair met extra downside pressure today after the ECB published its minutes from the September meeting.

In the minutes, ECB members showed concerns over the volatility and the speed of the recent appreciation of the exchange rate, while at the same time agreed that the economy of the region still needs substantial stimulus.

In addition, ECB’s board member P.Praet advocated for a close monitoring of the exchange rate.

Looking ahead, the US docket is next on tap, with initial claims and August’s factory orders due later. Furthermore, FOMC’s J.Powell, San Francisco Fed J.Williams (2018 voter, centrist), Philly Fed P.Harket (voter, hawkish) and KC Fed E.George (2019 voter, hawkish) are also due to speak.

EUR/USD levels to watch

At the moment, the pair is down 0.16% at 1.1742 and a break below 1.1696 (low Oct.3) would target 1.1662 (low Aug.17) en route to 1.1591 (100-day sma). On the other hand, the next up barrier emerges at 1.1793 (10-day sma) followed by 1.1833 (55-day sma) and finally 1.18876 (21-day sma).