The US dollar's bounce from the first part of the week should not develop into a broader trend despite a surprisingly strong recovery of the US retail sales numbers in January.
The January FOMC meeting minutes failed to impress the markets and echoed recent Fedspeak. In a nutshell: the economy is far away from the condition in which the talks about tapering would be justified.
The Last couple of hours prove that markets remain in "buy the dip" mode. The greenback trades lower against all main peers as well as emerging markets currencies. The EUR/USD pair bounced higher from the 1.20 area while the pound sterling skyrocketed and the GBP/USD rapidly recovered above the 1.39 mark. The EUR/GBP pair set new 10-month lows on Thursday as a consequence of the sterling outperformance. Noteworthy, the USD/JPY pair rejected the 106.00 handle as the rise of the US Treasury yields does not lead to further bonds selling. In the EM space, the Turkish lira and the South African rand lead the pack, followed by the Polish zloty and the Czech koruna.