EUR/USD loses ground for the sixth consecutive day on Wednesday, trading below 1.1730 after peaking above 1.1800 last week. The pair struggles amid a moderate US Dollar (USD) rebound following the release of December's Federal Reserve Monetary Policy Meeting minutes.

From a wider perspective, however, the common currency remains on track to a 14% yearly appreciation, boosted by the monetary policy divergence between the European Central Bank (ECB) and the Fed. Apart from that, US President Donald Trump's erratic trade policies and the softening US economy have weighed heavily on the Greenback.

On Tuesday, the FOMC's minutes confirmed the wide divergence among Fed policymakers. The monetary policy committee approved a 25 basis points rate cut by a lower margin than previously thought and conditioned further monetary policy easing to a steady decline of inflation, which casts doubts about the timing of the next interest rate cut. The US Dollar appreciated after the release of the minutes.

In the macroeconomic calendar, the release of the US Initial Jobless Claims will gather investors' attention. Still, volumes are likely to remain at thin levels as most markets will be closed on Thursday amid the New Year festivities and with Japanese markets shut for the rest of the week.

Source: Fxstreet