Currencies fell on Tuesday, with the S&P 500 retreating from four-year highs after the U.S. Federal Reserve said it was less inclined to provide more economic stimulus.
Supportive central bank policies have been a primary catalyst for the S&P 500's surge of 30 percent since October, even though improving economic conditions have also played a part in the rally. Investors still expect a pullback, but markets have remained resilient, often cutting losses going into the close, as they did both Monday and Tuesday.
Judging by today's FOMC minutes that stress economic improvement and improvement in Europe, the Fed is moving away from consideration of further stimulus. The minutes pulled down the Dow which ended 1/2 percent lower at 13,199 and they shaved $25 from gold which ended under $1,650. Lack of new stimulus also hurt demand for Treasuries where Fed buying has helped keep rates low. The 10-year yield rose 10 basis points to 2.29 percent.
Looking for a long trade on GBP/USD
Entry: 1.58914
Stop loss: 1.58679
Target profit: 1.59643
