Euro Weakens as US Dollar Strengthens Ahead of FOMC Minutes
The Euro (EUR) has weakened by 0.18% against the US Dollar (USD) during Wednesday's Asian trading session, slipping to around 1.1238. The decline comes as the US Dollar regains strength following a brief correction the previous day.
The US Dollar Index (DXY), which measures the Greenback’s value against six major currencies, is up 0.18% and trading just above 102.00. The index had pulled back on Tuesday as US bond yields paused their rally, but yields have since rebounded, surpassing the 5.3% mark again.
Investors are now focusing on the Federal Open Market Committee (FOMC) minutes from the September policy meeting, scheduled for release at 18:00 GMT. These minutes could provide further clues about future US interest rate policy, potentially influencing the Dollar's trajectory.
On the Euro side, concerns over France's fiscal crisis are weighing heavily on the currency. France's debt has ballooned to 119% of its Gross Domestic Product (GDP), raising worries about the country's financial stability and putting downward pressure on the Euro.
Technical analysis suggests EUR/USD remains in a bearish near-term bias, with the pair trading below the 20-day exponential moving average (EMA) at 1.1376. The Relative Strength Index (14) near 25 indicates oversold conditions, which might slow the decline but not reverse the current downward trend. Immediate resistance is seen at the 20-day EMA, while a drop below the yearly low near 1.1160 could intensify the selling pressure.