The European Central Bank could be the next major policymaking body that takes a step away from accomodation. According to the “minutes” from their December meeting, the central bank saw “some comfort” in wage dynamics but low inflation remains a concern. Most importantly, they would consider a gradual shift in guidance starting in “early 2018” if reflation continues which suggests that they’ve grown less dovish since their decision to cut bond purchases in October. These brief comments sent EUR/USD soaring 100 pips in a matter of hours and shifted the near term outlook for the euro. The single currency is poised for ... (full story)