EUR/USD Jumps Despite Hawkish Fed Minutes

The EUR/USD jumped by over 0.85% during the North American session on Wednesday, despite the Federal Reserve's hawkish tone in its latest minutes.

The Fed minutes revealed that policymakers are worried about inflation and believe that tightening monetary policy may be necessary if it doesn't decline.

However, traders seem to have ignored this message, focusing instead on the US Treasury's buyback of long-end bonds, which is seen as a method of yield curve control designed to suppress long-term rates.

The Eurozone inflation data for July showed a rise in the Harmonized Index of Consumer Prices (HICP) to 2.9%, matching preliminary forecasts and cementing the case for higher interest rates in Europe.