EURUSD jumps above 1.10 ahead of ECB minutes

October 10, 2019, | AtoZ Markets - USD sell-off is now lifting EURUSD to fresh monthly highs beyond the critical barrier at 1.10 level. The rise in Euro has forced the US Dollar Index to recede to the 98.80 regions or 3-day lows. The slowdown in the region does nothing but signals the looser for longer monetary stance by the European Commission Board (ECB) and the bearish view on the single currency.

On the other hand, potential US tariffs on imports of EU cars remain remains the main concern as well. Also, the Brexit and UK politics also adds to the current negative view.

Read More: GBPUSD Elliott wave analysis: Brexit pessimism drives Sterling lower

EURUSD Fundamental Outlook 

The ECB minutes September policy meeting is scheduled for release at 11:30 GMT. European central bank has dropped its deposit rate by 10 basis points to -0.50% in September and also announced a fresh bond-buying program. The bond program has been scheduled to begin in November.

One of the Governing Council members, Robert Holzmann recently criticized the zero interest rate policy (ZIRP) in Europe. He addressed that it leads to less growth and lower productivity.
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The EURO might jump higher from this level if the ECB minutes underscore the growing dissent. On the other hand, the Euro might come under pressure if ECB shows growing consensus and the US Fed Reserve meeting which was released yesterday showed increased concerns among policymakers. Thus, the FX markets are expecting more rate cuts than the US central bank delivers in 2019. 

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