EURUSD: The euro was pushed lower to 1.1065 from 1.1095 following the better than expected US Feb inflation data. The core CPI rose 0.3% versus the forecast 0.2% (prev: 0.3%) while Housing Starts rose to 1.18mio versus 1.15mio forecast (prev: 1.10mio). Before the CPI data, the euro traded sideways in Europe High 1.1101 Low 1.1073 (-28 pips) confined to a narrow trading range ahead of the all important, FOMC announcement today scheduled at 18:00 GMT followed by Fed chief Yellen's press conference. The dollar is firm with wide speculation that the Fed might shift their interest rate outlook and perhaps signal a rate hike before the last quarter of 2016 as inflation and employment conditions improve. Supports: 1.1055, 1.1025, 1.0950. Resistance: 1.1125, 1.1180, 1.1200
GBPUSD: The pound fell to the low of 1.4060 from 1.4090 following the US Feb CPI data. Before this, the pound made a small rebound to 1.4135 ( 53) pips on the better than expected UK January employment data. The headline and earnings data was better than expected. Jan Claimant count fell to -18k versus -9k forecast while Dec was revised to -28.4k from -14.8k. The unemployment rate fell to 5.1% from 5.2%. Despite the good employment data, the pound still fell to 1.4090 against the firm US dollar. Trading is fairly subdued ahead of the much awaited FOMC announcement later today.
USDJPY: The Japanese yen weakens against the major currencies following the dovish comments of BOJ Governor Kuroda: We can theoretically cut the interest rate to -0.5% in Diet testimony. He adds to stabilize FX and other fundamentals and will not hesitate to negative rates if necessary. Dollar yen rose from 113.00 to 113.75 from Asia to Europe. EURJPY rose to 126.15 from 125.40.
USDCHF: The swiss franc shows a slightly weaker tone against the firm US dollar and rose to the intraday high of 0.9902 from 0.9870 low in Europe. Trading has been subdued ahead of the FOMC policy announcment later and followed by Yellen. Tomorrow will be a significant day with the Swiss National Bank interest rate announcement with analysts bias to further SNB easing.