EUR/usd
The Fed preferred not to rush headlong into the fight. Yesterday's commentary highlighted the same disappointing aspects like slowdown in the employment growth, high level of unemployment, low spending, depression of the housing market and pointed out the same favourable processes like larger business investments and inflation slowdown with steady inflation expectations. Interesting enough, but the committee mentioned that with such growth rate the return to the normal employment level would take too much time. The final statement about the fomc's intention to provide additional accommodation as needed to promote a stronger economic recovery and sustained improvement in labor market conditions
GBP/USD
The manufacture is suffering not only in the USA and Europe. The same is happening in Britain. The local manufacturing PMI sank down to 45.4 in July. This is the lowest level since May 2009. July is the second month of the third quarter, in the second quarter, when this index was at a higher level (51.9, 52.0, 45.9), the economy lost 0.7% of GDP and the manufacturing sector suffered a loss of 1.3%. Judging by this we see that the current picture is really dismay. Britain has been on the decline for three consecutive quarters and in the fourth quarter the run of events can be just the same. The sterling suffered more than the euro yesterday. It is not very surprising, if we take into account that Britain still has to travel a long way to the full recovery of its economy.
USD/JPY
The Japanese yen once again bounced off the bottom below 78.0. Traders are maintaining a high correlation between USD/JPY and stock indices, but only while the yen is not very expensive. So yesterday night the yen fell below 78 following the indices, however on the Fed's decision it recouped the dollar rise and by now has returned to a more comfortable level of 78.40.
gold
Gold predictably fell yesterday on the news that the Fed wouldn't be too mild unless necessary. The fact that there won't be QE3 this month at some point even led to a 22bp decrease in the price of the metal. By now the rates have gone down to 1600 against yesterday's 1615. If the ECB launches QE, it is likely to boost the price of gold up. If the bank confines itself only to purchases of periphery bonds, the price will further go down.
