The dovish tone of the minutes of the Federal Open Market Committee (FOMC) weighed on the dollar. Commerzbank economists expect EUR/USD to trade between 1.04 and 1.05.
The dollar is under pressure again
“It should have been clear to many since the last Fed meeting in early November and the US inflation numbers for October that the Fed would downshift at some point on the pace of interest rate hikes.. But it is clear that many seemed to need the reminder of the Fed minutes to remind them again. But perhaps some also regretted entering the long Thanksgiving weekend in the United States with a “too strong” dollar.”
“Obviously, the new comfort level (i.e., the new equilibrium price for the dollar) is more likely to be between 1.04 and 1.05 against the backdrop of smaller Fed rate hikes in the near future.. Therefore, the brief recovery of the dollar is already over.”
Source: Fx Street