A long awaited decision to raise the interest rate led to 110 points depreciation of the Sterling against the Dollar.
The US President Donald Trump named Governor Powell as the new Fed Chair yesterday. However, markets showed little response to this decision, as it was widely expected.
After bouncing off the upper boundary of the junior channel, the New Zealand Dollar was testing the 200-hour SMA and the weekly PP near 0.69 for several hours but nevertheless failed to edge lower.
The US Dollar has maintained the same trading range against the Loonie, thus being located in the 1.2910/1.2815 area for the fifth consecutive session.
The Australian Dollar was stranded above the 55– and 100-hour SMAs on Wednesday, thus trading between the 0.7670 and 0.7690 marks.
EUR/JPY remained stranded between the 100-hour SMA and the weekly and monthly PPs for the whole session on Wednesday.
The Fed Monetary Policy Statement, indicating on the upcoming interest rate hike, led to short-term appreciation of the yellow metal against the buck.
As the FOMC Meeting did not bring any unexpected news, the surge of the rate was limited. In other words, the pair once was stopped by resistance barrier at the 114.24 level.
In result of release of various American fundamental data, the cable stopped the surge and returned back to the 1.3250 mark, from which it made a rebound in the beginning of this trading session.
Contrary to expectations, none of the yesterday's fundamental events led to notable price movements.
The Kiwi was limited by the 55– and 100-hour SMAs for most of the session on Tuesday.
As apparent on the chart, the sluggish Canadian GDP data release mid-Tuesday pushed the pair back in the channel up which was breached earlier in the session.
Following a reversal from the upper boundary of the junior descending channel early on Tuesday, the Aussie was expected to move south towards its lower boundary.
The common European currency was dominated by upside risks on Tuesday in the result of which it surged up to the bottom boundary of the previously-breached ascending channel near 132.80.
In line with expectations, until release of the US macroeconomic data the pair was moving relatively steady.
As it was expected, a release of positive consumer sentiment data elevated the pair to the 113.70 mark, which represented an approximate location of different moving averages.
Although the US economy showed convincing signs of growth, the Pound continued to rapidly appreciate against the Dollar yesterday.
Despite a release of various macroeconomic data yesterday, including the Euro Zone CPI and CB Consumer Confidence, the pair did not make any sharp moves and continued to move horizontally between the 100- and 55-hour SMAs.
The Kiwi was set for a minor appreciation against the US Dollar on Monday; however, sluggish fundamentals increased downside pressures on the Antipodean currency which fell 25 pips within the first hour today.
The US Dollar did not introduce any changes to its general price level, as it remained below the 55-hour SMA for the second consecutive session.
As apparent on the chart, AUD/USD reached the upper boundary of the minor descending channel early on Tuesday.
The common European currency edged slightly lower on Tuesday and consequently breached the trading range that had confined the pair for the last six weeks.
The gold prices continued to rise on Monday, following reports about the 1.3% PCE Price Index release as well as rumours that President Trump will chose Governor Powell to replace the current Fed Chair Janet Yellen.
On Tuesday, the Bank of Japan left the interest rate, target inflation and core inflation forecast unchanged.