The dovish statement from the FOMC, which decided to maintain its QE programme, has weakened the greenback against the euro during yesterday’s session. This trend continued through today's trading session, pushing the EUR/USD pair past the 1.3560 mark.
In addition to its statement, the FOMC also presented its economic projections. It revised its previous GDP projection of 2.3-2.6% to just 2-2.3%. In addition, the US unemployment was revised to 7.1-7.3%. As for the rate hike, there were three Fed officials who expect it to come in 2014, while 12 expect it to happen in 2015, and just two see it happening in 2016.
The EUR/USD pair reached a high of 1.3568 in today's session and is currently trading at 1.3550. Initial resistance for the pair is seen at 1.3635, followed by 1.3669. Meanwhile, initial support is seen at 1.3430, followed by 1.3396.
Aside from the euro, the aussie also fared well against the greenback after the FOMC meeting. The AUD/USD pair broke the 0.9520 late in yesterday's trading, and has hovered between the 0.9500 and sub-0.9520 levels in today's session.
The AUD/USD pair is currently trading at 0.9506, with initial resistance seen at 0.9623, followed by 0.9647. Initial support, meanwhile, is at 0.9427, followed by 0.9403.
As for the GBP/USD pair, it also got a boost from the FOMC announcement, which helped it break past the 1.6140 level. It has sunk to 1.6080 over the past hour, however, due to the poor UK retail sales data. On a YoY basis, it sunk from the previous 3.0% to 2.1%, beating expectations of it growing by 3.3%. On a MoM basis, meanwhile, it dropped from 1.1% to -0.9%, instead of slipping to just 0.4%.
The GBP/USD pair is currently trading at 1.6075, with initial resistance seen at 1.6293, followed by 1.6334. Initial support, on the other hand, is at 1.6019, followed by 1.5979.
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