US Dollar Jump on FOMC Faded, EUR/USD Recovers
  • Vote Up0Vote Down venynxvenynx
    Posts: 4,525Member
    Recap: The main comment that had grabbed the markets attention in the
    FOMC minutes was that “A number of participants suggested if the economy
    continued to make rapid progress toward the Committee's goals, it might
    be appropriate at some point in upcoming meetings to begin discussing a
    plan for adjusting the pace of asset purchases”. However, while this
    hints at the “T” word (taper), this is not entirely new, given that the
    comment has come from the small hawkish contingent on the committee and
    not the core. Keep in mind, since the minutes, NFP was notably soft,
    while higher than expected inflation data had been quickly talked down
    by Fed members. As such, in response to the FOMC minutes, the USD saw a
    slight bid to reclaim the 90 handle, while US yields picked up, however,
    the move has been largely retraced given the fact that the minutes are
    somewhat light on substance, providing little in the way of new
    information.To get more news about WikiFX, you can visit wikifx.com official website.

      EUR/USD: Following the FOMC minutes the Euro had stood its grounds,
    holding onto support at 1.2170-80 to make another test of the 1.22
    handle. Given the relatively light economic calendar, focus will be on
    the upcoming PMI releases tomorrow, which are expected to highlight an
    improvement in the Euro Area and thus underpin the currency. Thus far,
    the backdrop remains supportive for EUR/USD to challenge 1.2245-50
    again.

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