Last night, the Federal Reserve decided to keep US interest rates on hold for an extended period. Since the Australians raised their base rate earlier in the week, there was focus on whether or not the other major economies would follow suit. Post FOMC, the Asian markets were relatively quiet, but all eyes today will be focussed on announcements from the MPC in the UK and the ECB. The chart below shows the performance of EUR/USD since March 2009.


Market News
- AUDUSD range 0.9041-0.9112. We saw a little bounce from 0.9080 to 0.9112 post number but was quickly reversed as stock sold off and headlines on tax duties on aluminium. Support at 0.9010/0.9000 first off and a bounce could target 0.9200 handle. Resistance offered at 0.9130/50 topside.
- EURUSD range 1.4823-1.4882. 1.4900 level offered good resistance as weaker equities and lower cross/Jpy helped euro lower. Although good support at 1.4800/1.4780 and more at 1.4730 still. Topside resistance at 1.4900/50 as 1.5000 psychological is eyed.
- USDJPY range 90.30-90.86 overnight. Not too exciting as dragged around by Cross/JPY. Still range bound. Still 91.00 seem like good resistance with also 91.20/50 area. Support same still 89.50/90.00.
- We have the MPC announcing UK Interest Rates. The nine-member team are expected to keep UK interest rates at 0.5% - it has been at these levels since March 2009.
- In addition to setting Interest rates, decisions will be made on the extent of further quantative easing. Having already implemented £75bn in March 2009, there may be an additional £25bn to £50bn pumped in to the UK economy
- The ECB will announce interest rate decision at 1245 GMT, 45 minutes after the MPC. Jean Claude Trichet will be speaking from 1330 GMT

Major Economic News
1330 Initial Claims