Last Updated on May 20, 2026 by Deon
Financial markets were feeling uncertain on Wednesday because people were waiting to see what the Federal Reserve said in their meeting minutes. The US Dollar was still doing well. That was the big story in the markets for money and goods which made things tough for the Euro and gold prices.
At the time the USD/JPY was not moving much after going up recently because investors did not want to take big risks before they knew what the Fed was going to say.
EUR/USD Moves Lower as Dollar Strength Continues
The Euro was losing value compared to the US Dollar during the day because people were looking for things to invest in. More people wanted to buy the US Dollar because they were getting worried about what might happen in the world. They thought the Federal Reserve might keep interest rates high for a longer time.
The Euro and the US Dollar were having a time staying above the prices they had recently and they just kept going down all day. Now traders think the Euro and the US Dollar might stay under pressure if the Fed says something that makes people think they will be tough on the economy.
Even though the economy in the Eurozone has been doing a little better recently the US Dollar is still the one that people want to buy because it is doing better and people are feeling cautious.
Important prices to watch for the Euro and the US Dollar are
Support: 1.1170
Next price to watch if it goes down: 1.1120
Resistance: 1.1235
If the price goes below the support level it could lead to people selling the Euro and the US Dollar in the short term.
The USD/JPY was not moving much near the prices it had recently reached. The pair was waiting for information from the US economy and the Fed minutes.
Higher US Treasury yields are still helping the USD/JPY. Some investors are being careful near the recent highs. The Japanese Yen was not getting help from people looking for safer things to invest in.
The overall trend is still looking good for the USD/JPY even though it might stay the same for a while until there is new news to make it move.
Important prices to watch for the USD/JPY are
Support: 155.20
Resistance: 156.80
level to watch: 157.00
If US yields keep going up buyers might try to make the USD/JPY go up again.
Gold prices were under a lot of pressure. Went below an important level during the day. A stronger US Dollar and higher interest rates made people less interested in gold, which usually does poorly when yields go up.
The price of gold could not stay above the levels it had before which made it start going down. Many traders are watching to see if gold can stop going down around the level or if it will keep falling.
Even though there are still worries about what’s happening in the world the stronger US Dollar is the main reason why gold prices are going down.
Important prices to watch for gold are
Level it broke: $3,180
Next level to watch: $3,120
Resistance: $3,250
Gold might stay volatile until investors get an idea of what the Federal Reserve is thinking.
Everyone is waiting for the FOMC minutes, which are going to be the thing to happen in the markets this week. Investors want to know what the Federal Reserve thinks about inflation, the economy and what they will do with interest rates in the future.
If the Fed says something that makes people think they will be tough on inflation the US Dollar could get even stronger which would make things harder for gold and the Euro. On the hand if the Fed sounds less tough it might help risk assets do better.
For now markets are being careful because traders are getting ready for big moves after the Fed minutes are released.
Conclusion
The US Dollar was still doing well before the Federal Reserve minutes, which made the Euro and the US Dollar go down and gold prices fell below a level. The USD/JPY was not moving much after going up because traders were waiting for new information.
With the Fed, about to say something that will affect how people feel about the markets things could get more volatile in the coming days.
