EURUSD and Dow Rally on Questionable Stimulus Outlook

Stimulus expectations may have grown so heady that the markets are seeing the outcome that they want in developments that don't provide it. The ECB rate decision and Beige Book release this past trading day were seen as potential catalysts for another round of financial support to stabilize and lift the markets. However, the ECB only spoke of options while the Fed's outlook lacked any of the sense of fear that would offer the justification necessary to move on QE3 at the next policy meeting. Without a tangible move towards stimulus or some other growth-supportive development, this rebound in risk appetite trends could be living on borrowed time.