Yesterday in the evening the FED released their FOMC meeting minutes from the July meeting. July was not the most important meeting ever but there were a couple of events, such as Brexit and interest rate hikes, which the forex market was keen to hear what the FED was thinking about and how. Based on the opinion of the FED members for these events, the forex market then builds assumptions on how the FED´s monetary policy will be in the future and when the interest rates will be increased or cut.

But, let´s just see the price action in the USD so far.

Personally, I thought that the USD would surge higher on more hawkish comments than the statement which was released three weeks ago. The official statement tends to smooth the comments down from the FED members so the minutes usually provide more action. The Buck did find a few bids initially as the knee-jerk reaction but that only lasted a few minutes and was worth just a handful of pips. 

I thought that the run up would be bigger and last longer for the Buck but wasn´t meant to be. Everything reversed in a minute and the USD has been feeling heavy ever since. EUR/USD broke below 1.13 and USD/JPY is below the 100 support level as I type. It wasn´t supposed to go this way for the USD, but when does the price action move the way you expect in forex? We will have a deeper look at the reasons for this behaviour in our following market updates so stay tuned.