Yesterday, the Federal Reserve left interest unchanged at a level between 0.25 and 0.50% for a third consecutive meeting, which was the first cause of the weakening greenback. Further deterioration came after the Bank of Japan abandoned further moves to ease policy. Thanks to these circumstances, the USD Index moved sharply lower and slipped under the level of 94, approaching the mid-Apr low. What impact did this decline have on the euro, yen and Canadian dollar?

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Earlier today, the Australian Bureau of Statistics showed that the consumer price index dropped by 0.2% in the first quarter, missing analysts’ forecast. Additionally, consumer prices (year-on-year) rose by 1.3% in the first three months of the year also disappointing expectations. Thanks to these numbers, the Australian dollar declined sharply against the greenback, which pushed AUD/USD under previously-broken important line. Is it enough to trigger further deterioration in the coming days?

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Although U.S. dollar moved sharply higher against the yen on Friday (after news that the Bank of Japan could expand the negative interest rate policy), yesterday’s weak U.S. housing sector data (which showed that new home sales declined by 1.5% in the previous month) triggered a reversal and USD/JPY dropped to the first Fibonacci retracement. Will we see further deterioration in the coming days?

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Although today’s official data showed that German Ifo Business Climate Index dropped to 106.6 in Apr, the euro moved higher against the greenback as this week’s Federal Reserve’s policy meeting weighed on investors’ sentiment. What happened at the same time with other currency pairs?

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Yesterday, the euro moved lower against the greenback after the European Central Bank left its benchmark interest rate at zero and ECB president Mario Draghi indicated that further rate cuts could be forthcoming. Thanks to these circumstances, EUR/USD slipped under the Feb high once again, invalidating earlier small breakout. Will we see further deterioration in the coming week?

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