USD/JPY and EUR/USD reverse moves
The US dollar quickly fell 20-30 pips across the board after the FOMC Minutes were released. There was talk about how dovish they were but to me that looked like analysis to fit the price action.
"I don't see the case for selling the US dollar on these headlines and I'd consider fading it," I wrote immediately after the Minutes.
Most Fed officials thinking about hiking this year and dismissing international concerns is hawkish to me. Of course, the story changes because of the weak non-farm payrolls report but that's a different story.
A few things are contributing the US dollar rebound:
- Bonds are selling off in a similar whipsaw to the dollar
- Stocks are at session highs with the S&P 500 up 16 points and hitting 2011
- Fed's Williams is out later and could be hawkish
Overall the Minutes are the main factor but it's all part of the ebb and flow.