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Forex pairs in this Article » EUR/USD (San Francisco) - The Federal Reserve didn't change its status quo in its latest monetary policy decision but the USD reacted higher as the FOMC didn't mention any worry about the unemployment market.

Overall, the Fed wasn't as dovish as market expected so this lack of comments was perceived as bullish itself. Almost immediately rumors started that the central could start its taper as soon as December. In fact, the HSBC analysts just published that they see "a continued bias to scale back QE and view tapering in December as a 50-50 proposition."

In the same line, BK's analyst Kathy Lien commented in a recent report that she believes "the central bank will wait until March of 2014 to make a move but the mere possibility of December tapering," no matter the size of the cut, “may be enough to cause a pop in the dollar."

Following the Fed decision, the EUR/USD collapsed to 1-week low at 1.3695 but the pair bounced there and it closed the day at 1.3765. "The dollar gathered momentum across the board, although struggles now to continue around key levels," analyst says. "As for the EUR/USD, failure to quickly regain the 1.3750 area will likely keep the pressure to the downside, with next big hurdle of buyers waiting around 1.3640."

The USD/JPY rallied to its highest level since October 17 at 98.70 with the pair currently consolidating levels above the 98.50. The AUD/USD declined to lowest since Oct 13 at 0.9440. The AUD/USD maintains bearish tone in the 1 and 4 hours charts, supporting continuation towards 0.9380 over next session.

Main headlines in the American session:

US: CPI rose 1.2% in September

Germany Harmonised Index of Consumer Prices (YoY) rises 1.3%; (MoM) falls 0.2%

Fed keeps policy unchanged

RBNZ is unchanged at 2.5%; Will 2014 be the year?

US posted the lowest budget deficit since 2008
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