The focus in the US yesterday, was really all centered on the FOMC minutes and sure enough there were some dovish comments in there that we expected..

The key points of note where that there were some members who wanted more aggressive cuts than just 25bp and were looking for around 50bp. But at the same time, the response from markets was somewhat muted as this had already been priced into markets and then some.

So the moves following the release weren’t all that extensive. While the SPX closed out the session, up around )0.82%, others like the USD where trading marginally higher on the session.

GOLD which is highly correlated to any central bank move, is still holding above the key $1500 level for the time being.

There were some slight moves in risk assets, but really everything didn’t close far from where they began and in fact bond yields reversed a touch, basically telling us that the news was already well and truly priced into the market.

Later today, we get the ECB minutes which could be the same sort of event in terms of the impact on the EUR/USD. There has been little new information out of the ECB in months, so I won’t be getting my hopes up here.

Asian Market Outlook

The Asian session features only a couple of second tier data releases, with construction work done the key one for the AUD/USD. While the USD/JPY will get services PMI.

The Aussie remains below the key 0.6800 level and is slowly but surely coiling away which can be a sign of a looming breakout.

While the Yen looks to me like it has formed a bit of a base and wants to run at 107.00.