A lot of FOMC members support gradually increasing interest rates over the coming months so long as macroeconomic indicators stay in line with mid-term projections. On the other hand, some members are inclined to refrain from tightening monetary policy any further until they are sure that the recent growth in inflation is sustainable.
Political uncertainty in Germany didn’t cause the euro to drop as I expected. The US dollar’s decline together with disappointing US data stopped sellers from making any inroads. Prospects of a decline for the euro were dashed when the price exited the A-A channel. From the 45th degree, the price initially recovered to the 67th degree, making it to the 90th degree after the FOMC minutes were published.
There was also another factor at play against the dollar. Traders needed some kind of market trading times driver to help them determine which currency would be better to hold over the long weekend. The data that came has created a negative outlook for the dollar and the FOMC minutes have strengthened this outlook.