The Cable declined on Wednesday less than expected, as the pair closed trade in front of the immediate support, namely the monthly PP.
Since there is no more threat to the resistance trend-line, the focus is now on the July low.
The NZ Dollar overperformed, as yesterday's growth exceeded the forecasted target of 0.6680, namely the weekly R1.
The American Dollar failed to appreciated and, thus, sustained heavy losses yesterday.
"It therefore seems highly unlikely that the Fed will commit itself one way or the other in its statement this evening, in order to give themselves plenty of wriggle room between now and the September meeting." - CMC Markets (based on WBP Online) Pair's Outlook The Australian Dollar outperformed its US counterpart on Tuesday, and even edged higher than the target level. As a result,
The EUR/JPY cross remained relatively unchanged on Tuesday, as it was glued to the weekly R1.
The market is in a wait-and-see mode before the FOMC statement, but later in the day we are likely to see a spike in the volatility.
Although the USD/JPY advanced on Tuesday, the 124.00 was not reached.
The Cable behaved according to the forecast yesterday, as it managed to stabilise above 1.56 major level.
Unless the Fed postpones a rate hike beyond September, the Euro is likely to start negating recent gains.
The New Zealand Dollar managed to break out of the descending channel, as a rally occurred yesterday.
"Front-end U.S. yields are slightly higher - I think that's a key driver. But what's been driving markets over the last few weeks has been weakness in commodity prices." - BNP Paribas (based on CNBC)Pair's OutlookAfter reaching a daily low of 1.2979, the USD/CAD currency pair was pulled back up, which resulted in the US Dollar losing only five pips against
In spite of rather substantial volatility to the upside, the AUD/USD remained relatively unchanged yesterday.
The European currency behaved exactly with accordance to expectations on Monday.
The bears are not as active as expected, but the outlook will remain negative as long as resistance at 1,100 is intact.
The US Dollar completely ignored the positive fundamental data yesterday, as it declined against the Yen.
Surprisingly, the Cable appreciated on Monday, even despite better-than-expected US fundamental data.
Yesterday the pair has nearly reached the target level of 1.1150, but now there is very little hope the recovery is going to continue.
Last Friday, the NZD/USD currency pair bounced off the channel resistance trend-line and declined towards the 2010 low once again.
On Friday, the US Dollar barely managed to negate last Thursday's losses, in spite of strong volatility to the upside.
The AUD/USD currency pair behaved in accordance with the forecast, as it declined last Friday.
The EUR/JPY cross fell in line with expectations, as it edged lower on Friday.
The outlook is strongly bearish towards the bullion, as right now we are consolidating just below the recently broken major trend-line.
The Greenback failed to appreciate on Friday, which resulted in reaching the weekly PP at 123.59.