The EUR/USD pair ended its losing streak and posted modest weekly gains to settle in the 1.0830 price zone on Friday, as investors continued to drop the Greenback.
January FOMC Minutes confirmed that view with most participants noting the risk of moving too quickly to ease the stance of policy. Only two of them highlighted the risks of keeping rates too high for too long. On the balance sheet, many participants suggested that it would be appropriate to begin in-depth discussions at the March meeting to guide an eventual decision to slow the pace of its runoff (at some point later in time).
The FOMC minutes of the January meeting were in line with other recent commentary, with the bulk of the committee noting the "risks of moving too quickly to ease the stance of policy", emphasizing the risk of more persistent inflation. The initial market reaction was muted, as recent upside surprises in macro data have already prompted markets to reduce the pricing of rate cuts.
The US Dollar (USD) is returning back to flat after a dropkick moment on Thursday after a string of events accelerated a downside move in the US Dollar Index (DXY) overnight. The first decline came on the back of the US Federal Reserve