USD lost ground Wednesday in reaction...>

EURO-DOLLAR: USD lost ground Wednesday in reaction to the FOMC (unchanged as

widely expected) and dovish comments from Fed Powell(Fed expected to hold rates

steady for the foreseeable future). EUR/USD spiked to $1.1145, as it extended

the recovery away from the earlier intraday low of $1.1070, before easing back

to $1.1128 into the close. Asia opened with a bearish USD tone, which edged rate

back to $1.1144, before it settled back to $1.1136 into Europe. Overall, USD

remains on the back foot with EUR/USD holding most of its Wednesday gains.

Germany final CPI unrevised from the earlier flash release and had little

effect. Focus on the ECB policy announcement(no change widely expected) at

1245GMT, with new ECB chief Lagarde making her first monetary policy

announcement at 1330GMT. Some suggest she may come across as less dovish than

Draghi. US Initial Jobless Claims and PPI released at 1330GMT. UK at polls today

which may make for a generally quiet day. 

- Support $1.1128, $1.1100, $1.1070. Resistance $1.1145/50, $1.1154 200-dma,

$1.1170/80.