Yahoo Finance Market Snapshot – FOMC Minutes Leads to More Dollar Weakness
Mixed Stock Markets
The European stock markets have been mixed, with the DAX down and the FTSE up for the day. We had mentioned a few times earlier that the DAX is likely to be under pressure in the short and medium term with all the talk of tapering. Even a strong consumer confidence data from Germany has failed to lift the DAX for the day. The FOMC meeting minutes did add to the volatility in the currency markets though it did not have much of an impact on the stock markets for the day. The euro continued to get stronger against the dollar as the dollar got beat across the whole market and there does not seem to be any end to that in the short term. The dollar has basically lost the support from the incoming data and from the Fed and this has exposed it to the market risk.
Dollar the Star
The dollar has been the star over the last 24 hours but for all the wrong reasons. The FOMC meeting minutes were the biggest news in this week, with this week being the last of the month and hence devoid of much news. The minutes did touch upon the monetary policy and the balance sheet but there was nothing in it by way of support for the dollar. This led to a sell off in the dollar across the markets which continued the down trend for the dollar, which we have been seeing in the markets over the last few weeks.
This article was originally posted on FX Empire
