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USD lower on FOMC minutes

FOMC minutes of the June 19 meeting disappointed the US dollar bulls as they did't suggest imminent tapering of QE3. EUR/USD soared to $1.2950 on the release, but quickly returned below $1.2900. 

Here are the key points:

  • Several FOMC members saw QE tapering warranted soon;
  • Many members said labor market improvement and economic growth confirmation is needed before a QE taper;
  • Fed funds rate is expected to stay at record lows for a considerable period after the end of QE;
  • Many members emphasize distinction between decisions on slower bond buying and future rate hikes.

Full text of minites is available here


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