The FOMC minutes proved far more market moving that most had expected as it became clear that the call for more quantitative easing is building. The implications for the USDollar are clear as more stimulus would lift risk appetite and directly devalue the reserve currency through an increase to the money supply. With this mix in mind, the USDollar made a critical break of a year-long trend while EURUSD pushed above 1.2500 to seven week highs. Yet, the implications aren't as clear as some may expect. The S&P 500 and AUDUSD didn't offer aggressive rallies of their own - unusual for these risk guided markets. When it comes down to it, there are still questions about if and when the Fed pursues more QE. And, in the meantime, market conditions are still not supportive of strong trends.
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