Greenback on a Climb after the Release of the FOMC Statement
The USD/EUR pair seems to have broken its support levels after the American session. Expectations were rife that the Fed would continue with its monetary stimulus. The pair was driven by that factor.
After the statement was released, it was confirmed that the Fed would decrease the stimulus. The Feds decision was to induce a reduction by about $ 10 billion per month to about $65 billion per month. There was no reaction from the pair which suggested that the news had already spread in the market. As on today, traders will watch the German Employment Change, but would probably be more concerned about the U.S GDP release later in the day. If the results are better than what’s expected by everyone, the USD/EUR pair might go below 1.3600. The support lies at 1.3580 and resistance 1.3685.
The USD/JPY pair decreased though the dollar became stronger than the FOMC statement. The Japanese Yen benefited and reduced the pair from 103.35 to 101.90. However, the weakness of this pair is considered temporary by trade analysts who say that it will pick up in the future. After a minimal correction, the pair is back at 102.45. Traders are going to eye the Japanese CPI index due for release. Support lies at 101.90 and resistance lies at 103.55
The GBP/USD pair faced a downfall from 1.6600 to 1.6550 at the American session. Though a reaction was witnessed from the pair, it didn’t manage to fall back to the support level at 1.6510. The decision made from the Feds was expected by everyone and was priced already. If the U.S data is strong and supports it, we may see the pair breaking through the support. The support lies at 1.6510 and resistance lies at 1.6620.