EUR/USD saw biggest gain on Tuesday in almost one month ( 0.3%). Economists at Société Générale analyze the pair’s outlook.

FOMC minutes could nip Dollar profit-taking

Month-end portfolio rebalancing flows could bring profit-taking in the Dollar but that’s a story for next week. 

Nothing in the European or US data suggests a directional shift is imminent or justified. 

The FOMC minutes pose an obvious threat today and could nip Dollar profit-taking and bull steepening in 2s/10s UST in the bud. 

Technically, EUR/USD is attempting cross above 200-DMA (1.0827). If it overcomes this hurdle, the bounce could extend towards the high achieved so far in February near 1.0900/1.0915.