EUR/USD PRICE OUTLOOK: US DOLLAR STRENGTHENS AS FED MEETING MINUTES HINT AT TAPER TALKSEUR/USD value motion simply plunged 30-pips to session lows
EUR/USD PRICE OUTLOOK: US DOLLAR STRENGTHENS AS FED MEETING MINUTES HINT AT TAPER TALKS
- EUR/USD value motion simply plunged 30-pips to session lows because the US Greenback strengthened
- FOMC minutes hinted that taper talks may begin at upcoming Federal Reserve conferences
- Renewed fears of Fed tapering sends the broader US Greenback and Treasury yields surging
- Go to the DailyFX Training Heart or take a look at this EUR/USD buying and selling information
EUR/USD value motion simply pivoted sharply decrease throughout afternoon commerce on Wednesday as markets digested the most recent FOMC minutes. The US Greenback is strengthening sharply in response to contemporary Fed taper fears as “a pair” of officers hinted on the “dangers of inflation pressures constructing as much as unwelcomed ranges.” Some Fed officers additionally famous how they have been frightened in regards to the ranges of market threat taking.
EUR/USD PRICE CHART: 15-MINUTE TIME FRAME (19 MAY 2021 INTRADAY)
Chart by @RichDvorakFX created utilizing TradingView
The corresponding inflow of US Greenback energy resulting from contemporary Fed taper fears despatched EUR/USD dropping by greater than 30-pips to session lows. US Greenback shopping for strain got here alongside a spike in Treasury bond yields with the ten-year rising over 4-basis factors. That mentioned, the Fed echoed the way it “would doubtless be a while” till the financial system makes substantial additional progress towards its coverage targets earlier than warranting a transfer to taper asset purchases.
Numerous FOMC officers advised, nevertheless, that it is perhaps acceptable to start discussing a plan for adjusting the tempo of asset purchases at upcoming Federal Reserve conferences if the financial system continues to make progress towards its most employment and value stability targets. This stands to maintain the US Greenback in demand and EUR/USD value motion underneath hearth if the danger of Fed tapering continues to realize extra traction. The upcoming launch of US PMI information, which is printed as a high-impact threat occasion on the DailyFX Financial Calendar, may intensify the Fed taper debate with extra proof of not-so transitory inflation amid persistent provide chain disruptions.
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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