Earlier today, the euro extended losses, hitting a fresh two-week low against the greenback after St. Louis and Atlanta Fed Presidents indicated that the U.S. central bank is still likely to raise short-term interest rates later this year. Where will the exchange rate head next?

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Although the USD Index moved sharply lower on Friday, slipping to its lowest level since the beginning of the month and hitting an intraday low of 94.20, the index reversed and erased almost all Thursday’s drop. Earlier today, the greenback extended gains, pushing EUR/USD below previously-broken lines. Does it mean that the recent upward move is over?

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Yesterday, the Federal Reserve left its benchmark interest rate unchanged between zero and 0.25%, which pushed the USD sharply lower. Thanks to these circumstances, the greenback slipped to its lowest level since the beginning of the month, hitting an intraday low of 94.48. What impact did this drop have on the short-term picture of our six currency pairs?

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Earlier today, the Swiss National Bank kept interest rates at record lows (-0.75%) and the target range for the three-month Libor unchanged at between -1.25% and -0.25%. In these circumstances USD/CHF moved lower and broke below the lower line of the consolidation. Is it enough to trigger another sizable decline?

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Earlier today, data showed that the euro zone consumer price index dropped to 0.1% from an initial estimate of 0.2%, while core inflation (without volatile food and energy prices) was unchanged at 0.3%. These weak numbers fueled concerns that the ECB may expand its quantitative easing program and pushed EUR/USD lower. As a result, the pair extended yesterday’s losses and invalidated earlier breakout above the short-term resistance. What does it mean for the exchange rate?

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