Dollar Rallies on Positive FED

A positive Federal Reserve statement made earlier today boosted the Dollar, forcing the EURUSD to break below 1.4000 for the first time in six months. The pair has now rebounded and sits at 1.4020.

An upbeat Fed advised that it plans to end some emergency lending and asset-buying programs. In addition, the central bank informed that interest rates will be held low for some time. However, a one vote dissention has increased hope that a rise may now be closer.

With the Euro-zone still plagued with Greece’s fiscal problems, a potential credit down-grade for Portugal is now adding more selling pressure on the Euro.

Markets will now turn their attention to Obama’s State of the Union speech tonight as well as the uncertainty surrounding Bernanke’s re-appointment.