News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bullish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • The Federal Reserve System (the Fed) was founded in 1913 by the United States Congress. The Fed’s actions and policies have a major impact on currency value, affecting many trades involving the US Dollar. Learn more about the Fed here: https://t.co/ADSC4sIHrP https://t.co/eaA8ZI6DVu
  • Chinese property development company Sinic Holdings (2103) - Down 87%...@DailyFXTeam #contagion #Evergrande https://t.co/h5mfwqGASZ
  • 🇪🇸 Balance of Trade (JUL) Actual: €-1.60B Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Heads Up:🇪🇸 Balance of Trade (JUL) due at 08:00 GMT (15min) Previous: €-0.98B https://www.dailyfx.com/economic-calendar#2021-09-20
  • Fitch on China Property Developers - View will turn negative if sales in H2 21 fall below that achieved in H2 19 and/or if sharp fall follows through to H1 22 - Government policies in sector remain tight and show no sign of imminent loosening
  • Slippage can be a common occurrence in forex trading but is often misunderstood. Understanding how forex slippage occurs can enable a trader to minimize negative slippage, while potentially maximizing positive slippage. Learn about FX slippage here: https://t.co/Blrl0uF2Ct https://t.co/B0Y3XJhkRS
  • Key levels in forex tend to draw attention to traders in the market. These are psychological prices which tie into the human psyche and way of thinking. Learn about psychological levels here: https://t.co/8A1QhwMVKo https://t.co/1xhewkdV21
  • (USD Weekly Tech) US Dollar Dominant Uptrend Back In Focus: EUR/USD, USD/JPY, NZD/USD, USD/CHF https://www.dailyfx.com/forex/technical/article/special_report/2021/09/20/US-Dollar-Dominant-Uptrend-Back-In-Focus-EURUSD-USDJPY-NZDUSD-USDCHF.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/IpwzBGCi7P
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/qv8keXFzHZ
  • Join @IlyaSpivak at 22:00 EST/2:00 GMT for his cross-market weekly outlook webinar. Register here: https://t.co/MKGHc9ae64 https://t.co/JMlT0Wn3DK
EUR/USD Sinks as FOMC Minutes Show Threat of Fed Tapering

EUR/USD Sinks as FOMC Minutes Show Threat of Fed Tapering

Rich Dvorak, Analyst

EUR/USD PRICE OUTLOOK: US DOLLAR STRENGTHENS AS FED MEETING MINUTES HINT AT TAPER TALKS

  • EUR/USD price action just plunged 30-pips to session lows as the US Dollar strengthened
  • FOMC minutes hinted that taper talks could start at upcoming Federal Reserve meetings
  • Renewed fears of Fed tapering sends the broader US Dollar and Treasury yields surging
  • Visit the DailyFX Education Center or check out this EUR/USD trading guide

EUR/USD price action just pivoted sharply lower during afternoon trade on Wednesday as markets digested the latest FOMC minutes. The US Dollar is strengthening sharply in response to fresh Fed taper fears as “a couple” of officials hinted at the “risks of inflation pressures building up to unwelcomed levels.” Some Fed officials also noted how they were worried about the levels of market risk taking.

EUR/USD PRICE CHART: 15-MINUTE TIME FRAME (19 MAY 2021 INTRADAY)

EURUSD Price Chart US Dollar Fed FOMC Minutes Taper

Chart by @RichDvorakFX created using TradingView

The corresponding influx of US Dollar strength due to fresh Fed taper fears sent EUR/USD dropping by more than 30-pips to session lows. US Dollar buying pressure came alongside a spike in Treasury bond yields with the ten-year rising over 4-basis points. That said, the Fed echoed how it “would likely be some time” until the economy makes substantial further progress toward its policy goals before warranting a move to taper asset purchases.

A number of FOMC officials suggested, however, that it might be appropriate to begin discussing a plan for adjusting the pace of asset purchases at upcoming Federal Reserve meetings if the economy continues to make progress toward its maximum employment and price stability goals. This stands to keep the US Dollar in demand and EUR/USD price action under fire if the risk of Fed tapering continues to gain more traction. The upcoming release of US PMI data, which is outlined as a high-impact risk event on the DailyFX Economic Calendar, could intensify the Fed taper debate with more evidence of not-so transitory inflation amid persistent supply chain disruptions.

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES