The major currency pair is slightly retreating on Wednesday on low volatility and anticipation of the Fed minutes. The current EURUSD quote is 1.0880.
The past two days have been quiet and calm for the currency section: Monday was a shortened business day in the US, and Tuesday was a public holiday due to Independence Day celebrations. The macroeconomic calendar for Europe was also mostly empty. Investors were in a lull, trading within a narrow range, and conserving their energy for future market movements.
Their gathered-up strength will come in handy today when the US Federal Reserve will release the minutes of its June meeting. Traditionally, the market will be looking for hints about future steps in monetary policy.
At the last meeting, the Fed decided to keep interest rates unchanged. The pause is likely to be short-lived, and already at the July meeting the cost of credit will increase by 25 basis points. The Fed continues to combat inflation as core prices require attention.