USD 

The dollar was sold off sharply after the FOMC statement but it was quick to recover some of its recent losses while holding steady against other major counterparts. 

Economic data from the US was better than expected, with both Philly Fed index and existing home sales printing higher than expected gains. For today, there are no economic releases lined up but three FOMC officials (George, Tarullo, and Bullard) are set to give testimonies. 

EUR 

The euro was able to extend its rally against the yen but struggled to stay strong against the U.S. dollar. There were no reports released from the euro zone yesterday but the upcoming German elections is starting to weigh on the shared currency. There are no reports due from the euro zone again today as traders could start pricing in expectations for the German elections or unwind some of their euro trades ahead of the event risk. 

GBP 

The pound returned some of its recent gains to the dollar when the UK retail sales showed disappointing results. Consumer spending fell by 0.9% in August instead of rising by the estimated 0.4%. However, GBP/USD managed to hold on to the 1.6100 area and appears ready for a rebound. Public sector net borrowing data is due today and an improvement might be enough to lift the pound. 

CHF 

The franc was able to hold on to its recent levels against the U.S. dollar, as the SNB upgraded its growth forecasts for the Swiss economy. There were no actual monetary policy changes made though. There are no reports due from Switzerland today, as the franc could continue to draw support from the hawkish SNB statement. 

JPY 

The yen was sold off sharply towards the end of the Asian session, as a BOJ official was quoted saying that the central bank is worried about external risks to growth and the possible negative impact of Abe’s sales tax increase. In addition, BOJ Governor Kuroda spoke of the good effects of the recent easing program and emphasized that they could expand it if necessary. 

Commodity Currencies (AUD, NZD, CAD) 

The comdolls struggled to hold on to their recent gains, as all showed retracements to the dollar yesterday. There were no major reports released from the comdoll economies, but Canada’s medium-tier wholesale sales report printed strong results. For today, Canadian CPI figures are up for release and possibly allow USD/CAD to resume its drop if they come in strong. 

By Kate Curtis from Trader’s Way