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.