The FOMC meeting minutes published yesterday revealed that the will take a more cautious position in terms of managing its amid the increasing uncertainty. Earlier this week, some Fed officials also expressed their ‘dovish’ tone on policy tightening.
The Fed emphasizes that the decision-making will depend on the incoming economic data. In this context, the greenback could be more volatile in the months to come as any strong report could revive rate hike expectations and send the buck north.
Anyway, as the divergence factor is fading away, the dollar will lack arguments and could derail the upside trend should the economy confirm the fears expressed by the Fed and by investors lately.
So, after a break above 1.15, EURUSD may target even higher, but the potential way up won’t be easy and straightforward for the common currency as there are still many risks in Europe, from weaker economic data to Brexit and its consequences.