European Currencies Find a Short-term Bottom after Publication of Fed Minutes


The beginning of this year turned out to be quite successful for the American currency. In just a few trading sessions, the euro/US dollar pair lost about 200 points, the pound/US dollar pair dropped to 1.2600, and the US dollar/yen managed to strengthen by more than 300 points. However, yesterday the upward correction on the greenback slowed down slightly, which allowed the major currencies to find short-term support.


The pound/US dollar currency pair, after testing 1.2800, sharply rolled back. Weak volatility during the pre-holiday days contributed to increased sales of the pound, and yesterday the price fell to 1.2600. But by the end of the American session, the pair sharply rolled back up to 1.2670.

Today is an important fundamental day for the pair. At 12:30 GMT+3, the UK composite index for December will be published. The index of business activity in the services sector and the volume of mortgage lending for November will also be released. Analysts expect growth in indicators, which may contribute to the continued strengthening of the pair.

On the daily GBP/USD chart, we see the bearish reversal bar from December 28. At the moment, the pair's decline has slowed down at the intertwined alligator lines. If the level of 1.2000 is broken, we may expect a resumption of the decline to 1.2500.


According to EUR/USD technical analysis, buyers of the single European currency failed to strengthen above the psychological level of 1.1000. A sharp rebound from 1.1140 contributed to the formation of a bearish reversal bar, which is currently being worked out. If sellers of the pair manage to consolidate below the alligator lines on the daily timeframe, we may expect the downward movement to continue in the direction of 1.0800-1.0600.

Today at 16:00 GMT+3, we are waiting for data on the consumer price index in Germany for December. Tomorrow at 12:00 GMT+3, a similar indicator will be published, only for the eurozone as a whole.


Having tested 141 at the market open, buyers of the American currency coordinated and strengthened the pair to 144.00. The release of the FOMC minutes contributed to the slowdown of the upward correction in the pair. Further pricing of the pair will almost entirely depend on the incoming data of the coming trading sessions. Thus, today at 16:30 GMT+3, weekly data on the number of applications for unemployment benefits in the United States will be released. At 17:45 GMT+3, the index of business activity in the US services sector for December will be published. And tomorrow, the first US employment report of this year will be released.

On the USD/JPY daily chart, we observe the development of the reversal bullish bar from December 28. At the moment, the price has approached important resistance at the alligator lines on the daily timeframe. If buyers manage to strengthen above 144.00, we may expect continued growth in the direction of 146.00.

Trade over 50 forex markets 24 hours a day with FXOpen. Take advantage of low commissions, deep liquidity, and spreads from 0.0 pips. Open your FXOpen account now or learn more about trading forex with FXOpen.

This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.

Latest from Forex Analysis

Market Analysis: GBP/USD Struggles While USD/CAD Aims Higher USD/JPY Technical Analysis: Yen Strengthens after Comments from Japanese Officials The American Currency Resumes Its Growth Australian Dollar Weakens amid Inflation News Exchange Rates Consolidate at the Beginning of the Week

Latest articles

Financial Market News

Weekly Market Wrap With Gary Thomson: CAC 40, AUD, OIL, AMAZON

Get the latest scoop on the week's hottest headlines, all in one convenient video. Join Gary Thomson, the COO of  FXOpen UK, as he breaks down the most significant news reports and shares his expert insights. European Stock Markets on


Price of Gold Briefly Exceeded $2,050 per Ounce

In addition to new records in the stock markets, the reaction to yesterday's news about inflation in the US was also a decrease in government bond yields and a rapid rise in the price of gold — the cost of XAU/


Nasdaq-100 Price Hits All-time High after 4 Straight Months of Gains

The Nasdaq-100 index is holding above 18,000 today following yesterday's bullish momentum, fueled by inflation news. The PCE consumer spending index amounted to 0.4% on a monthly basis, which was in line with analysts' expectations. A year ago,

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 65.68% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.