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The US dollar is falling sharply across the board in a somewhat belated reaction to the FOMC meeting minutes. The content of the minutes was not that different from the statement and the press conference, but the markets see the dovish side.

EUR/USD is above 1.29, GBP/USD is getting closer to 1.50, USD/JPY is below 100.

Is this second belated move the general direction that we’ll see now? Or rather a buy opportunity?

Update: somewhere deeper in the minutes, the press found this quote:

About half of these participants indicated that it likely would be appropriate to end asset purchases late this year. Many other participants anticipated that it likely would be appropriate to continue purchases into 2014.

This is very dollar supportive, but, it appears only in the projections and is very different from the minutes. The dollar is stronger, but the market is still confused.

Update 2:  Bernanke sends the dollar crashing down with dovish comments  – EUR/USD edging towards 1.30 and GBP/USD is above 1.50.

  • EUR/USD managed to recover from the Asmussen crash and the loss of the long term uptrend support line earlier in the day, but now it certainly got a boost: the high so far was 1.2946, 190 pips above yesterday’s lows.
  • GBP/USD recovered earlier from a multi year low of 1.4813 and is now on the verge of reconquering 1.50.
  • USD/JPY remains very volatile and is battling around 100. After an initial recovery, the pair is now below this line.
  • AUD/USD continues its recovery. After a setback below the 0.9180 line, the pair is back above this line. See how to trade the Australian job data with AUD/USD.
  • USD/CAD is falling – the Canadian dollar had no real reasons to crash as it did lately. It is now around 1.0450.

Update: trading remains very choppy, and this second wave of dollar selling might be fading as the first one did.

Ben Bernanke will be giving an academic speech at 20:10 GMT. He might also say something about the next moves. And, he will be asked questions by the academics.

An important indicator for jobs will be released tomorrow.  See how to trade the US jobless claims with EUR/USD.