The ECB takes the bull by the horns. The Fed will likely be forced to follow

The ECB has already started to increase its asset purchases in order to address rising bond yields. There has been a curious respite on the US bond market in the wake of the vote of the stimulus package but yields are up again, while the move is smaller in the euro area, thanks to the ECB’s decision. In this context, the EUR/USD that has neared 1.20 yesterday, is logically retreating this morning, now below 1.1950. The market is probably going to increasingly test the Fed’s reluctance to intervene in order to cap the bond yields’ rise before its next meeting in two weeks.