BREAKING: EURUSD lower after FOMC Minutes

Minutes from the FOMC meeting that took place in December has just been released. Markets were primarily focused on discussions around Fed's balance sheet and what is the future outlook for QE taper and potential winding down of balance sheet. The meeting minutes showed the Fed discussing reducing its balance sheet shortly after it raises rates later this year. 

Here are key takeaways from the document:

• Many participants judged that the appropriate pace of balance sheet runoff would likely be faster than previously
• Participants saw economy fixed to slow as latest pandemic wave hits and supply issues to last longer
• Some participants also noted that it could be appropriate to begin to reduce the size of the Federal Reserve’s balance sheet relatively soon after beginning to raise the federal funds rate.
• Participants generally noted that, given their individual outlooks for the economy, the labor market, and inflation, it may become warranted to increase the federal funds rate sooner or at a faster pace than participants had earlier anticipated.
• Job market conditions were still far from Fed's goal

EURUSD broke below the 1.1335 level after FOMC Minutes and is heading towards next support level at 1.1300. Source:xStation5