Session Recap: USD firmer after Fed move

FXstreet.com (Córdoba) - While EM volatility continues to weigh on sentiment, financial markets continue to assess Fed's announcement of $10 billion QE tapering to $65bn per month. The decision was much anticipated and didn't have a strong negative impact initially.

However, after a tame knee-jerk reaction, the USD strengthened against major competitors with the main exception of the Australian dollar. The Kiwi that was hit by the RBNZ decision overnight.

During the European session, the EUR/USD and the GBP/USD fell to fresh weekly lows of 1.3585 and 1.6444 respectively, with the Cable also weighed by domestic data. Meanwhile, the USD/JPY and the USD/CHF hold near daily highs at 102.45 and 0.8990 respectively.

During the New York session watch for US jobless claims, GDP and pending home sales.

Main Headlines in Europe:

Switzerland: KOF Leading Indicator rises to 1.98 in January

European open: Risk-off prevails despite Fed taper

Germany: Unemployment Rate at 6.8% in January


UK: Mortgage Approvals decrease to 71.638K in December

UK: M4 Money Supply drops 1.4% in December

EMU: Consumer Confidence up to -11.7 in January