Listen to the latest market mood for the EURUSD pair.
Weak EUR, Strong USD
The anticipated FOMC minutes last night disappointed the market as it showed that the Fed is less accommodative than the market was anticipating. The yield curve control was mentioned as a monetary policy tool, but most participants considered the tool to only provide modest benefits. Furthermore, there were many participants who pointed to potential costs associated with yield caps. The reluctance to use yield curve control supported the USD. Remember that the Bank of Japan and the Reserve Bank of Australia have both used yield caps, so there are some recent examples of this policy in action for the Fed to consider. Due to the disappointment in the Fed minutes, the Dollar Index reclaimed the 93 handle and dragged the EURUSD down from 1.19000.
Therefore, for this session expect EURUSD sellers from rallies higher.
Trade Risks: If we see strong risk-on sentiment this will weaken the USD and push the EURUSD pair higher.