Following Tuesday’s bids under the 200-hour moving average (MA) support, the EUR/USD bounced up. The central bank’s balance sheet is set to expand further, according the Fed chairman Jerome Powell. In addition, the Fed’s minutes are set to determine whether the USD will find more bids, if they point at a growing slit between the policymakers. 

The EUR/USD pair is being traded at 1.0963, conveying a slight improvement. The pair was boosted after a weakening around the USD, from the 200-hour MA support at the 1.0947 handle. The Fed’s Powell stated that the central bank’s shrinking balance sheet is set to expand. Powell also said that he does not rule out another interest rate cut this month. Rates were cut by 25 basis points in September, by the central bank, which led to a split amongst policymakers on a necessity for more close-term easing. 

However, the Cable has been oscillating in a narrow band, with Brexit news affecting the pair and the FOMC meeting minutes. Reports concerning the likelihood of a halt in discussions between the UK and the EU brought up a bearish pressure on the British Pound. German Chancellor Angela Merkel suggested to British Prime Minister Boris Johnson to keep Northern Ireland in the EU customs union. Later in the day, European Council President Donald Tusk tweeted to say that Johnson was playing a stupid blame game. The GBP/USD pair fell to below the 1.2200 handle. 

Furthermore, the Japanese yen is being traded at 107.15 against the USD.