Global FX: EUR, JPY Finish Lower

After opening below the 50- and the 100-DMA lines, the USD index is trading higher by around 0.4% as market participants were seen taking advantage of the sharp rally staged by EUR/USD and GBP/USD overnight to re-establish long USD positions, with analysts noting demand from HF and leveraged money accounts. Nevertheless, despite the downtrend observed since hitting highs on the day during the session overnight, the pair was able to settle in minor positive territory. In terms of euro-zone specific commentary, analysts at UBS cut euro zone 2013 GDP to -0.7% from -0.4% and ups 2014 GDP forecast to +0.8% from +0.7%. Separately, ECB's Weidmann said that the ECB has not tied itself to the mast with forward guidance, which does not rule out rate hikes when inflationary pressures emerge. Forward guidance is not a change of strategy, just an effort to make monetary policy stance easier to understand. Separately, ECB's Coeure said that he expects rates to remain low for extended period of time.

GBP/USD
The pair finished the session in positive territory, after surging higher following risk-supportive speech by Bernanke late on Wednesday. Fed's Bernanke said plan for asset purchases close to what the markets expected and current unemployment of 7.6%, if anything, overstates health of US labour market. There was little in terms of UK related macroeconomic commentary, but analysts at UBS raised 2013 UK GDP forecast to 1.1% from 1.0% and raises 2014 GDP forecast to 1.8% from 1.2%.

USD/JPY
The pair finished the session lower and below the 50-DMA line at 99.47 after the BoJ kept their monetary policy unchanged and retained plan for JPY 60-70trl annual rise in monetary base. The BoJ said that the decision on monetary base target was unanimous and will make policy adjustments as needed. Next technical support level is seen at the 100-DMA line at 97.74.