EUR/USD
The euro slid as investors flocked to safe-haven dollar positions on Wednesday after the Federal Reserve's statement regarding the interest rate hike is on its way next year. The Federal Reserve is not seen raising interest rates until 2015, but many investors bet Wednesday's statement will clash language suggesting that the borrowing costs will remain low for a considerable amount of time, which gave the greenback support. In the economic news, the statistical office of the European Union, reported earlier that consumer price inflation in the euro zone fell 0.2% in November, in line with market expectations, after a flat reading in October.
GBP/USD
The pound slid against the dollar on Wednesday after investors remained camped out in greenback decisions of the release of the Federal Reserve's statement on monetary policy, which indicated that interest rate hike is on its way next year. The pound pared losses against the U.S. dollar after data showed that the U.K. claimant count change fell more than anticipated last month, while the unemployment rate remained unexpectedly unchanged in in the three months to October. Meanwhile, the U.K. Office for National Statistics reported that the unemployment rate held steady at 6.0% in the three months to October, compared to expectations for a tick down to 5.9%. The number of people in the U.K. claiming unemployment benefits fell by 26,900 last month, compared to expectations for a decline of 21,200.
USD/JPY
The US dollar strengthened against the Japanese yen after the Federal Open Market Committee Statement indicated that interest rate hike is on its way next year, which sent US dollar up against its major forex peers. In Japan, the imports dropped 1.7% in November from the year before to ¥7.08 trillion, declining for the first time in three months as crude oil prices plunged across the globe, government data showed Wednesday. The balance in goods trade remained in the red for the 29th straight month. The trade data for November showed a deficit of ¥891.9 billion, narrower than the ¥1.001 trillion expected.
