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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (San Francisco) - The Federal Reserve continues to taper in February as the FOMC decided unanimously to cut by another $10Bn its bond buying pace. The decision was widely anticipated and major pairs maintained its previous ranges.

According to the official press release, the Fed's forward guidance remains unchanged as the economy outlook is slightly better with the job market showing further improvement. The FOMC expects that the "federal funds rate of 0 to 1/4 percent will be appropriate at least as long as the unemployment rate remains above 6-1/2 percent."

Later on the day, the RBNZ maintained its interest rate at 2.5%, however it signaled a hike rate 'soon' and market is speculating on March as the month that will be. "While headline inflation has been moderate, inflationary pressures are expected to increase over the next two years. In this environment, there is a need to return interest rates to more-normal levels. The Bank expects to start this adjustment soon," said the press release.

The NZD/USD lost the last 2-day recovery as the pair declined 100 pips to test 0.8175 following the central bank decision. However the NZD managed to recover some ground and it closed the day above 0.8200.

The EUR/USD closed down for fourth day, however today's lost was limited as the pair declined to 1.3600 on stop hunting at the US opening bell but the euro recovered previous levels and it closed at 1.3660.

GBP/USD remains to trade above the 1.6500 with the cable closing at 1.6560. The USD/JPY held above 102.00 despite a brief trip to sub-102.00 levels following the Fed decision.

Main headlines in the American session:

BOE's Carney: Pound has an important effect on inflation

Fed announces another $10Bn taper; economy improving further

RBNZ maintains interest rate at 2.5%; to hike rates 'soon'

Wall Street closes sharply down after Fed continues with tapering
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