The euro retreated today against the US dollar and the Japanese yen on the speculation that it rallied too much earlier. It may still resume its rally depending on the decisions of the US and Japanese policy makers.

The minutes of the Federal Reserve policy makers’ meeting scheduled to be released today. In case the Fed would perform the expected quantitative easing the dollar would resume its downfall. The talks suggest that Japan may intervene to weaken its currency. Therefore, we can expect the rally of the euro not because of its inherent strength, but due to the weakness of other currencies.

EUR/USD fell from 1.3877 to 1.3809 as of 11:29 GMT today, following the decline to 1.3775. EUR/JPY went down from 113.89 to 113.18.

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