US Dollar Remains in Downtrend After Fed Reiterates Dovish Stance
Euro May Regain Fundamental Control with its Own With GDP Numbers
Japanese Yen Awaits the Signal for Risk Appetite to Finally Reverse
British Pound Could See Breakout Versus Euro, US Dollar
Swiss Franc May Decline as Path Clears for Risk Correction
Canadian Dollar: Options Markets Show Clear Risk of USDCAD Rallies
Australian Dollar Rally May Continue if Risk Appetite Remains in Play
New Zealand Dollar May Be Weighed By Weak Domestic Demand

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Is it a coincidence that the bullish rally behind the capital markets has stalled and threatened a retracement just as the world’s central banks start to confirm their intentions to withdrawal the emergency aid initially put into place to stem a financial  and economic collapse? While it is too early to tell whether the removal of speculators’ government safety net will spark profit taking and a meaningful reversal from those proxies that have risen so consistently through most of the year; we are seeing market participant growing more critical of the divergence between the fundamentals and the months of speculative exuberance.

EURUSD – Euro Forecast Turns Short-Term Bullish vs Dollar
GBPUSD – British Pound Forecast Remains Positive
USDJPY – Japanese Yen Likely to Recover versus US Dollar
USDCHF – Swiss Franc Expected to Gain
USDCAD – Canadian Dollar Forecast Near Neutral
GBPJPY – British Pound Forecast to Gain vs Japanese Yen

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The dollar was on the decline after the FOMC’s rate decision today; but was this a direct reflection of the event itself or merely a sign that FX traders’ interests lie elsewhere? Considering risk appetite was on the rise before the central bank’s announcement was released, it is safe to say that the currency was still taking its cues from underlying market sentiment (where the dollar is relegated to its status as a safe haven and therefore funding currency). This is the resistance the world’s most liquid asset must overcome should we expect it to determine its own path in the future.