• GBP/USD +0.9%
• USD/CHF -0.8%
• AUD/CAD +0.7%

GBP/USD

Rate Cuts May Be Afterthoughts: Increased speculation on todayââ,¬â"¢s anticipated Fed announcement provided enough momentum for the sterling bull trader to test the 1.7850 figure.  Spurring earlier pushes were better than expected results from the recent housing prices report, which suggested a confirmed stabilization in the housing market as well as a potential near term upside in the sector.  However, retaining most of the focus looked to be Januaryââ,¬â"¢s GfK consumer confidence survey along with an improved near term retail snapshot provided by the CBI distributive survey.  According to the consumer confidence survey, British citizens may be more willing to consume in upcoming months as improved employment and a positive economic outlook have changed several minds.  In addition, retailers look more hopeful as retail sales figures have been lifted for the past 5 months.  The data bolstered further notions that rate cuts may now be an afterthought in the minds of central bankers propping up the near term valuation.

Rumorville: Orders are thin on the runup before the Fed announcement.  With the intraday spike, bids continue to reside below the current spot at 1.7750 (first level of intraday resistance) with lighter bids above at 1.7779.  Comparatively stops are above at 1.7840.

USD/CHF

Bearish Momentum Temporarily Fizzles: Riding out the last of the bear wave, bull initiatives look to grow full blown at the start of the Asian session.  Consolidating above the 100-hour moving average at 1.2776, the golden cross in the Stochastic confirms upside attempts at the previous resistance of 1.2897 with a textbook morning star formation.  First consideration to the upside would be the minor resistance at 1.2788 (10-hour moving average) and 1.2815 (confluence of the 20-hour moving average and 23.6 percent fib from the 1.2554-1.2896 advance).  Penetration of the latter would see a clear assault of the aforementioned resistance ceiling.  Downside advancement by bears would be capped at the 61.8 percent fib of the 1.2551-1.2896 advance at 1.2685.

Rumorville: Given the overnightââ,¬â"¢s overly bearish tone, offers continue to reside at 1.2840 and below at 1.2800.  On the other side, bids remain at the intrasession low of 1.2740 and even further below at 1.2725 with corresponding stops at underneath at 1.2715.

AUD/CAD

Short Run For Aussie Bulls: Australian dollar bulls got a push higher in the overnight on dovish expectations from todayââ,¬â"¢s Federal Reserve interest rate decision.  Additionally, the underlying currency looked bolstered by a better than expected business index of last nightââ,¬â"¢s business confidence survey.  In the month of December, the conditions segment gained 3 points to a 14 reading.  Reflective of continued strength, the gauge which measures sales, profits and hiring, indicates that more businesses saw positive conditions in the month of December.  Although it may not prompt central bankers into reconsidering further rate tightening, it is a reflection that the economy is strong and performing better than earlier expectations.  However, the momentum looked to be cut short following the Fed announcements as traders continue to side with Canadian denominations in attribution to the higher crude oil contracts and in line GDP figures heading into Asian session.

Rumorville: Bids on the Canadian dollar, to continue to the current downturn in the cross currency look to reside at 1.1400/10 which includes a big option defense lending to some volatility in the near term.  Comparatively offers remain at 1.1450 with no real bids for the Aussie leg until 0.7540.

Richard Lee is a Currency Strategist at FXCM.