The FOMC voted on Wednesday to leave U.S. borrowing rates unchanged at 2.00%. This came as no surprise as traders had taken out the possibility of a rate cut in June several weeks ago just as the string of weak U.S. economic data started to hit the news.

The Fed also commented that if the economy did not start to improve, there was the possibility that rates would remain at 2.00% the rest of the year. This comment is vastly different from the ECB's decision to raise rates in July and even later in the year if necessary.

Bonds rallied on the news thereby increasing the spread between Bonds and Bunds. This interest rate differential is making the Euro a more attractive investment.

Traders now feel that with the Fed holding rates steady and the ECB committed to raising rates, the Dollar has virtually no chance of rallying.

The USD/JPY is showing signs of weakness. Based on the current chart formation, a new main trend bottom was formed at 107.10. A trade through this price turns the main trend down. Early last week the market made a main top at 108.59. A trade through this price reaffirms the uptrend. If the market breaks out to the upside, look for a rally to 109.94.

With the Fed leaving rates alone, the spread differential favors the New Zealand Dollar. The NZD/USD is still in a downtrend. This pair is also trading inside of two ranges. The Main Range is .7921 to .7445 with a mid-point at .7683. The short-term range is .7445 to .7646 with a 50% price at .7546. Based on the current formation, the Main Trend will turn to up on a trade through .7646.

The GBP/USD was trading inside of tight range today ahead of the FOMC meeting. The Main Range is 1.9801 to 1.9408 with a mid-point at 1.9605. Gann angle resistance is at 1.9787. This price combines with the main top at 1.l9801 to form a resistance cluster. With the Main Trend down, the market will have to break out over this resistance cluster to turn the main trend to up. The Fed news should give the Pound enough momentum to power through the resistance.

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