Intraday Market Thoughts

January 27, 2010 15:28 ET: USD SHOOTS UP in the aftermath of the FOMC decision, which revealed an unexpectedly hawkish sign in the dissent of Kansas Feds Hoenig who voted against the Fed's outlook to maintain exceptionally low levels of the federal funds rate for an extended period due to a change in economic and financial conditions. Bond yields rallied across the board and oil prices fell well below 73.60, now looking for 72.80. We still expect gold to retest 1070 as an interim target after its failure to regain 1170 earlier this year. EURUSD struggles to hold above $1.40 for now, but a break below the figure is deemed an inevitability before the $1.38 objective is realized later this quarter. Friday's US Q4 GDP could potentially boost fresh USD longs especially if +5% is realized. GBPUSD eyes 1.6020, EURUSD eyes 1.3960, but any rebound is now seen unviable beyond 1.4180.