The pair extends its losses below critical tech levels this week, in the aftermath of the Fed’s hawkish hold and the dovish hike by its European counterpart in this month’s round of policy decisions

The pair sets fresh eleven-month highs today, after last week’s policy decisions by the two central banks, maintained the favorable monetary policy differential

The pair took a one-two punch this week, as both central banks paused their rate hiking cycles, but the Fed offered a clearer and more hawkish outlook compared to its UK counterpart

The Federal Reserve's policy committee decided to keep its interest-rate target unchanged yesterday and expressed confidence in the ongoing strength of the economy. They conveyed a hawkish message regarding the near and medium term.

The US Fed kept rates unchanged on Wednesday and sent the pair lower, just a week after its European counterpart had raised them, but indicated that it may have reached the peak

The pair had a muted reaction to accounts of the RBA’s rate hold, which showed that officials considered a hike, as it the Fed’s pivotal meeting looms

The pair comes from a mixed week, as it covered the decline for the hawkish remarks by the BoJ governor, but sis subdued today ahead of key policy decision by both central banks

The US 10-year real yield’s green 5-day EMA has pulled away from its orange 10-year EMA (black circle). This is suggestive of strength in the real yield, which is currently trading at 2%. This is elevated and is providing a layer of support for FXCM’s USDOLLAR basket.

The pair found support after Thursday’s plunge due to the dovish hike by the European Central Bank, but remains at a perilous state ahead of the Fed’s pivotal decision

Following a cumulative 450 basis point rate hike, the ECB has now elevated its deposit rate to an all-time high.