Following the FED’s commentary late in the US session yesterday, the US Dollar had a brief rally that shortly reversed. EUR/USD broke below 1.1700 before quickly retreating while GBP/USD also managed to hold the 1.3650 level as support.
The key event for today is the Bank of England interest rate decision at 12:00 GMT. Rates are expected to remain at 0.1% and commentary from the BOE will drive near term price action in the Pound. A break downward could see a test of the key 1.3500 level.
Gold has started to slide once again after attempting to come within striking distance of the $1,800 per ounce level. It’s currently trading at $1,768 and could see a slide back down to $1,750 before the end of the week.