FOMC Minutes Pose Risk as USD Breakdown Looms: GBP/USD, USD/JPY

Talking Points:

- EURUSD and GBPUSD could be on the verge of breaking higher.

- USDJPY holding January range lows.

- Forex economic calendar dotted with Fed events on Wednesday.

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At the March FOMC meeting, QE3 was tapered by $10B to a pace of $55B/month - still an impressive rate of monetary easing. A brief US Dollar rally ensued. Will the March meeting minutes yield a similar reaction? A bullish accelerant is much needed by the US Dollar right now - a hawkish Federal Reserve will do the trick.

Optimism on the US economy has been fading ever since the slightly disappointing March US Nonfarm Payrolls report, and the US Dollar has fallen to its lowest levels since late-October as a result. Today's event risk comes at a crucial moment for the US Dollar technically against many of its major counterparts - watch the above video for more detail.

Read more: AUD/USD and GBP/USD Break Higher as Post-NFP Dollar Turmoil Continues

--- Written by Christopher Vecchio, Currency Analyst

To contact Christopher Vecchio, e-mail [email protected]

Follow him on Twitter at @CVecchioFX