After the Federal Reserve’s announcement of its June meeting minutes, the Dow Jones and Nasdaq began to slip. As stock traders watched the action with despair, currency traders witnessed the US dollar gain. This strengthening of the USD marked a two-year high for the currency’s value.
In the minutes, policymakers made it clear that they were not planning more quantitative easing procedures at this time. Word has it that they will closely monitor the economy for signs of further weakening before they decide to add more money to the already record-breaking stimulus plan– an idea that has been met with much controversy.
In the chart below, Forex Analyst Mark Maldonado illustrates a 58 pip move in the EUR/USD pair in the hour directly after the meeting minutes were released.
So what can you take from this news?
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