10 Apr 2014
Session Recap: The Fed gives the quietus to dollar; EUR/USD rockets to 1.3850
FXStreet (San Francisco) - Has attempted the ECB to push down the Euro with verbal interventions? So, the Federal Reserve publishes a dovish FOMC minutes where officials hinted nothing has changed but decided to cut down the unemployment rate threshold.
"Most participants preferred replacing the numerical thresholds with a qualitative description of the factors that would influence the Committee's decision to begin raising the federal funds rate," affirmed the minutes with a general consensus that the 6.5% level for the first rate hike was outdated.
The Dollar declined hard against its major competitors but the Yen, at least for now, because the JPY has a scoop for a test of 100.00 in the short term as market tests BOJ determination. The USD/JPY tested 101.75 many times in the day; however the pair managed to hold levels and close around 102.00 in its first positive day in fourth days.
The EUR/USD rallied for third day as the pair jumped to close above the 1.3850 level amid EUR 1 Bln in options at 1.3800 while reaching highest since March 24 at 1.3861 following the minutes. "In the 4 hours chart technical readings maintain a strong positive tone, looking for a short term extension towards 1.3870/80 area first, in route to the year high of 1.3966," commented Valeria Bednarik from FXStreet.
The Sterling jumped for third day against the US Dollar too as the GBP/USD tested the 1.6800 level at highs since February 17. Pair seems ready to break above 1.6820 and to look for further highs since 2009.
Main headlines in the American session
G7 to meet on Thursday
US Wholesale Inventories in line with expectations (0.5%) in February
FOMC minutes: No changes mean to change something
Hilsenrath analysis: Fed worried about misleading on interest rates at policy meeting
US stocks rallied for second day while FOMC minutes showed nothing has changed
"Most participants preferred replacing the numerical thresholds with a qualitative description of the factors that would influence the Committee's decision to begin raising the federal funds rate," affirmed the minutes with a general consensus that the 6.5% level for the first rate hike was outdated.
The Dollar declined hard against its major competitors but the Yen, at least for now, because the JPY has a scoop for a test of 100.00 in the short term as market tests BOJ determination. The USD/JPY tested 101.75 many times in the day; however the pair managed to hold levels and close around 102.00 in its first positive day in fourth days.
The EUR/USD rallied for third day as the pair jumped to close above the 1.3850 level amid EUR 1 Bln in options at 1.3800 while reaching highest since March 24 at 1.3861 following the minutes. "In the 4 hours chart technical readings maintain a strong positive tone, looking for a short term extension towards 1.3870/80 area first, in route to the year high of 1.3966," commented Valeria Bednarik from FXStreet.
The Sterling jumped for third day against the US Dollar too as the GBP/USD tested the 1.6800 level at highs since February 17. Pair seems ready to break above 1.6820 and to look for further highs since 2009.
Main headlines in the American session
G7 to meet on Thursday
US Wholesale Inventories in line with expectations (0.5%) in February
FOMC minutes: No changes mean to change something
Hilsenrath analysis: Fed worried about misleading on interest rates at policy meeting
US stocks rallied for second day while FOMC minutes showed nothing has changed