Euro now down 120 pips
Euro buyers have been piling in for months in anticipation of a taper announcement. It finally came today and now there isn't a catalyst for buying the euro.
Vis-à-vis, there's a big 'sell the fact' unwind going on that's compounded by a solid, broad bid the US dollar today.
Part of the latest leg in the dollar is because the House voted to adopt the Senate budget resolution on reconciliation. That will clear the way to a tax cut and the text of the bill is expected Nov 1.
On the USD side, I expect a few speed bumps on taxes that could lead to some USD selling but it's not coming today.
Technically, the zone just above 1.1660 is massive.
