The initial reaction to the Fed minutes seemed to be an unwind of the price action seen over the last couple of days . Overall the minutes were hawkish, but so was Brainard and other members of late.
Initial reactions saw:
- USD dipped lower
- Yields moved lower
- Stocks moved higher
However, as I type some of the moves have already seen some reversal. So that suggests the market is just a bit of a "sell the fact" vs any change in expectations from what is expected.
EURUSD : The EURUSD moved up toward the 1.09253 swing level, but reversed back down below the 1.0899 swing level and currently trades at 1.0890. Back below the 1.0900 level.
USDJPY: The USDJPY ticked to a new low for the day below 123.508, but has bounced back and trades at 123.83. It is still below the high for the day at 124.046.
Nasdaq: The Nasdaq moved up close to the intraday high at 14031 (reached 13988.94), but has since moved to a new session low in a quick reversal. The index is back below its 38.2% at 13847.93. The 200 hour moving average at 13698.86 is the next downside target. The index is currently trading down -2.81%.
The S&P index is also trading to a new low. It is currently down -68 points or -1.5% at 4457.52. It's 38.2% retracement level of the last move higher comes in at 4437.65.
