The EUR/USD was under pressure today, driven lower by a continuation of the decline triggered by yesterday’s surprise Fed minutes. On Wednesday, the Euro sold off against the U.S. Dollar after the latest Fed minutes revealed that several Federal Open Market Committee members were considering ending the bond-buying program sooner than expected.
Since the Fed started stimulating the economy by purchasing assets, the dollar has been under pressure. This has helped boost demand for higher-yielding assets such as the Euro and especially the stock indices. Late last year the central bank said it would keep on buying bonds until the unemployment rate dropped below 7%. This created an indefinite time frame which gave investors the green light to continue to support higher risk assets.
On Wednesday, it was revealed that the Fed did talk about the possibility of ending the bond-buying program sooner than expected because it was becoming too costly. The EUR/USD sold off sharply once this news was revealed. The EUR/USD is under pressure again today after a report showed services and manufacturing in the Euro Zone shrank at a faster pace in February than economists forecast.Continue Reading....
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