Looks like talk of the Fed potentially shifting away from super-loose monetary policy quicker than the market expected is prompting profit-taking in EUR/USD. The further we pullback from the 1.4720 target the market has had in its cross-hairs, the more significant the pullback becomes.
US bond yields have firmed 9 bp so far this morning, helping give the dollar a lift.
Traders report selling from a UK clearing bank help leading the way lower in EUR/USD. We’ve eased as low as 1.4640. Stops are eyed in the 1.4625/30 area, below former highs around 1.4635/45.
It is interesting to note that gold ain’t buying the Fed talk. It hangs in very firmly, trading at $1015.50.
