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USD muted after FOMC minutes

FXstreet.com (Córdoba) - In an unusual move, the Federal Reserve released the minutes from its March 19-20 meeting earlier than scheduled. However neither the surprise nor the content had much effect on the US dollar, which trades overall mixed across the board.

Minutes showed members disagreed on the appropriate timing to start withdrawing QE. Several participants saw asset purchases slowing later in the year and stopping by year-end, while some saw a reduction in purchases at about midyear.

Meanwhile, broad risk appetite, which saw the S&P 500 reach yet another all time high, boosted commodity currencies and other risk trades, but the shared currency failed to benefit from the positive mood.

Despite recent advance, the euro remains threatened by reality in the eurozone. Economic indicators are not improving, and like they were in a cue, one by one members come under the market's spotlight and scrutiny, with Slovenia now gaining attention.

Against the yen, the greenback continues to approach the major 100.00 area as the BoJ ultra loose policy it's taking its toll on the Japanese currency.

Euro fails to hold above 1.3100

Technically speaking, even though the outlook begins to turn slightly negative in short-term charts, EUR/USD holds a positive tone in bigger time frames. Still the 1.3140/50 area (the 100– and 50– day moving averages) is the more important resistance level to overcome to confirm an upward continuation with 1.3200 as next target.

On the other hand, loss of the 1.3000 mark (psychological level/100-hour SMA) could increase pressure on the cross and see a deeper correction.

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Standard and Poor's, the rating agency, has decided to revise higher its outlook on the Cyprus economy from negative to stable according to a recent press release. S&P sees that the immediate risk of sovereign default has receded.
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Forex Flash: USD/JPY stays contained - UBS

Wednesday was an extremely interesting day for Japan, says the UBS analyst team as JGB yields have suddenly risen. "The yield of two and five year bonds was suddenly twice as high as the week before and trading on JGB's had to be suspended temporarily", they comment.
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