US policymakers are still broadly in agreement on the need to raise borrowing costs again despite US President Donald H. Trump’s sharp criticism of interest rates, the minutes of the Fed’s latest policy meeting on monetary policy showed.
The minutes of the September 25-26 meeting, released on Wednesday, said all policymakers supported a hike in September. The consensus could boost expectations that the central bank will raise interest rates for the fourth time this year in December.
The minutes of the meeting indicated that members of the Federal Open Market Committee on Monetary Policy Determination “generally expected that the new gradual increases” in borrowing costs would be consistent with the quality of sustained economic growth, labor market strength and inflation predicted by the majority.
Full statement from here: FOMC Minutes
Conclusion: The statement was positive, supporting the greenback against major currencies.
The US dollar index which measures the strength of the greenback against a basket of major currencies rose 95.34 levels, opening the way to 95.60 levels, a halt is likely but a break would open 85.90 levels, further upside, resistance comes at 96.30 levels.
On the downside, support comes at 94.75 levels ahead of 94.45 levels, stability above support level will keep pushing to the upside, anyway; buying the USD on dips is recommended.
Support: 94.75, 94.49, 93.79, 93.35
Resistance: 95.60, 95.90, 96.30, 96.75
EURUSD: The pair lost support 1.1537 yesterday, this level should cap any upside move and bring fall resumption, now, the pressure will be on 1.1478 levels where a cut will aim 1.1408 levels. Above 1.1537, resistance comes at 1.1605 level.
GBPUSD: As we said before, the pair under pressure below 1.3215 levels and a further corrective pullback are likely, immediate resistance comes around 1.3145 levels below that level will keep pushing on 1.3075 levels where a cut will aim the 1.3000 levels.
USDJPY: The pair remains in recovery mode above 111.75 levels, immediate support comes around 111.35 levels, now eyes on 112.85 levels, a test to 111.35 is likely before attempts to break above 112.85, next resistance comes at 113.38 level (static resistance) high of Oct 09 2018. Anyway: The key support 111.75/112.35 is likely to hold.