After correcting for the past few days, the EURUSD skyrocketed right back through the 1.2000 figure after ECB minutes revealed that the Council is clearly starting to think about a taper. With EZ economy enjoying its best performance in more than a decade, there is plenty of scope for EU yields to rise further and the market clearly agrees.

The euro has been capped at the 1.2100 level which is a three year high, failing to take out the figure in several prior attempts. But with ECB clearly turning hawkish and with US data signaling a slowdown in inflation, three times may be the charm for the pair and it could finally clear the 1.2100 figure for good. Tomorrow US Retail Sales figure could be the catalyst for the move if the number misses forecasts and FX markets grow even more skeptical about the prospect of further Fed tightening.