The highlight of last week on the USD was coming from the release of the FOMC minutes on Wednesday 18th of February. The minutes from the last meeting showed that the American policy makers were less hawkish than the market would have expected as many members were inclined to keep the policy rate at zero for longer despite the fact that they kept a rather enthusiast view on the economic growth prospective and the US job market.

USD

The highlight of last week on the USD was coming from the release of the FOMC minutes on Wednesday 18th of February. The minutes from the last meeting showed that the American policy makers were less hawkish than the market would have expected as many members were inclined to keep the policy rate at zero for longer despite the fact that they kept a rather enthusiast view on the economic growth prospective and the US job market. As a result, we have seen the US 10 year treasury yield tumbling to 2.04% as well as the dollar losing ground against most of its major peers as illustrated by the Dollar Index (DXY) pressured lower to a low of 93.80 the following day.

This move was however short lived and offered opportunities for dollar bulls to come back in position and take advantage of a new leg up. Next key risk event for dollar traders is coming this week with Janet Yellen two days testimony before the US Senate and House on Tuesday and Wednesday. Hopefully, Yellen will clarify a bit the situation regarding a probably rate hike for 2015 as the latest FOMC minutes were favourable to adopt a more “patient” stance.

EUR

Back in the Eurozone, single currency traders and the whole market in general followed the developments around the Greek case negotiations developments with the Troïka. The EUR/USD price action reflected pretty well the nervousness of investors to any piece of news along the developments of the negotiations.

It is interesting to notice that any bullish attack attempt on the EUR/USD was capped at 1.1440 which represents the 23.6% Fibonacci retracement from the down move that started on the 16th December 2014 to end of January from 1.2568 to 1.1096. So far this week the pair is in a downtrend and managed to break below 1.1300 for a brief moment on Monday morning, the next key support that traders are keeping under radar is found at 1.1277.

Draghi speech at the unveiling of the new 20 euro banknote organized by the ECB in Frankfurt will still be monitored closely by traders in search of hints regarding the monetary policy development for the Eurozone though we do not expect him to address this topic.