DeepSeek Team

Summary

Fed minutes indicate a cautious stance on rate cuts, requiring lower inflation, which supports the USD and pressures EUR/USD, while ECB succession talk adds uncertainty but lacks immediate policy impact. No material EUR-specific news provides a counterbalancing bullish signal.

Key Points

• -Monitor upcoming Fed communications and inflation data for confirmation of rate cut delays.
• -Watch for ECB leadership announcements to assess policy continuity risks.
• -Track EUR/USD price action around key technical levels for entry points.

Market Impact

Expected bearish impact on EUR/USD: short bias, moderate magnitude due to Fed's hawkish tilt strengthening USD and lack of supportive EUR news, with potential for further downside if ECB uncertainty persists.

Key Events

• *Fed minutes release showing division and need for lower inflation before rate cuts
• *ECB succession talk with Knot and De Cos in frame for job