EURUSD continues to find resistance around the 1.08 level, having peaked just above earlier today, but reversed back down pretty fast. FOMC members continue to remain evasive about announcing the first rate cut, which continues to provide a bid for the US dollar.

EUR/USD Chart H4 – Returning Back to the 2-Week Range

FED member Jefferson appeared earlier today, confirming again that rates remain higher for longer. Jefferson’s comments mentioned inflation on six separate headlines (out of 9). Clearly he’s concerned about inflation. Jefferson is a permanent voting member on the Federal Reserve as a result of being a governor. EUR/USD made a quick reversal, and fell below 1.08 again, however the 200 SMA (purple) is holding as support for now.

Fed Gov. Jefferson answering questions

1. Acknowledgment of progress: Jefferson acknowledges the progress made by the economy, particularly in terms of inflation moderating and the resilience of the labor market.
2. Concern about inflation: Despite the progress, Jefferson expresses concern about inflation, indicating that it remains a significant issue that requires attention.
3. Focus on policy rate: Jefferson believes that maintaining a policy rate in restrictive territory is appropriate given the concerns about inflation. This suggests a cautious approach to monetary policy.
4. Need for evidence: Jefferson emphasizes the importance of looking for more evidence that inflation is abating before considering any changes to monetary policy. This indicates a data-dependent approach to decision-making.

EUR/USD Live Chart