Markets Down On Fed Concerns

Range bound trading inhibited the USD from making big moves against most of the majors as uncertainty put the traders on the sidelines awaiting an ice-breaking announcement or rumor. FOMC statement a day before, although unchanged, caused some restlessness in the equity markets and sent them lower.

The EURUSD managed to outline a 120 pips range in yesterday's trading sessions, however failed to show a clear trend or direction. Although EZ Industrial Orders fell short of expectations, yet did not manage to cause a noticeable drop in the EUR against its counterparts. Add to this a no-event Friday for the Euro Zone which may squeeze the pair into an even tighter trading range.

In Japan, things we different where USDJPY fell to just above support of 89.20 putting some heavy pressure on EURJPY and AUDJPY. Risk aversion due to vague and uncertain FED statement caused JPY to strengthen against its counterparts especially the USD. Today's US GDP may fuel a breakout lower or higher than the strong-holding 89.20 support line.

GBPUSD concluded the NY trading sessions in a whiplashing movement after trying testing the 1.5000 psychological handle earlier that day.

Crude was flat yesterday moving in a tight range of 1 to 2 USD a barrel and trading with no direction, while GOLD followed same path but in a larger swinging range. GOLD was trading at 1240.00 in late NY session.