EUR/USD challenged the important resistance level at 1.3335 this morning but that level was swiftly rejected and prices fell over two cents from its highs.
USD/JPY, on the other hand, flirted several times with the 90.07 resistance level before blasting through that level after the Fed signaled it is prepared to buy Treasuries but it has not done so yet. Equities enjoyed another strong rally today, closing up 3 and 1/3 percent on the day basis the S&P 500.
Treasury rates rose after the Fed but closed off their highest yields. 10s end at 2.65% after reaching 2.69%.
The most aggressive move of the day was the dramatic cut in interest rates by New Zealand’s Reserve Bank. The RBNZ slashed rates by 150 bp to 3.5% this afyternoon, sending Kiwi down to 0.5190 from the 0.5260 area before bouncing back.
EUR/USD ends the day at 1.3142, UD/JPY at 90.30 and EUR/JPY at 118.70.
