Closed in NY at $1.3072 after easing off post FOMC react highs of $1.3097, finding support ahead of the close at $1.3060. Opening trade in Asia saw rate pivot $1.3070, dipped to $1.3056 before picking up fresh demand which lifted it to $1.3091 before it settled between $1.3080/90 ahead of the European open. FOMC announced the widely expected buying of $45bln of outright Treasuries, replacing Operation Twist, and adding to the monthly $40bln MBS purchases, but the announcement of the thresholds for hiking rates surprised, saying lows rate would remain while unemployment above 6.5% and while inflation not above 2.5% (though still expects this to keep earlier forecast of low rates until 2015 unchanged). The dollar retains a soft undertone after this announcement, though the unemployment call seen as hawkish. Offers seen in place to $1.3100, a break to expose recent high at $1.3127. Offers seen to $1.3130 with stops above, a break to open a move toward $1.3150. Support $1.3050, $1.3035/30. SNB policy announcement at 0830GMT the morning interest, along with Eurozone meetings on Greece.
EasyForexNews Research Team