Last week we saw EUR/USD rapidly drop after a shock CPI report but it snapped right back over the next three days.

Yesterday was saw another quick drop on the Fed minutes. But if the CPI report couldn’t keep it down, how will the vaguest hint of a taper?

It’s now erased that part of the drop and has a bit of work to do to get to yesterday’s high of 1.2245. To my way of thinking, if something won’t fall on bad news, it will keep on rising. Europe is suddenly doing much better on vaccines and eventually they’ll sort out the recovery fund.

Meanwhile, there are some hefty option expiries at 1.2160 and 1.2175 today and tomorrow but we’ve far enough away now that I don’t expect them to come into play.