fed keeps rates on hold

 Last night the Federal reserve kept their interest rates on hold, reports indicate we may not see a rate hike until late 2010 or even possibly 2011.The dollar has gained against most currencies on the back of this, and USD/JPY tipped higher for the third consecutive day.  

 UK retail sales figures for November MoM came in this morning at -0.3% against an expected 0.5% rise, pushing sterling lower against a basket of currencies. Cable has moved below 1.61 on the back of last nights Fed decision to keep interest rates on hold, boosted by the poor UK retail figures.Key support levels around 1.6083 should see the dollar move towards 1.59 regions.    

 Data due for release tomorrow includes German IFO, GBP public finances, and Euro-zone trade balance for November.

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