GBP/USD is consolidating the downside below 1.3700 following the FOMC decision-led decline to near the 1.3650 region. EUR/GBP gained some traction on Thursday and recovered further from multi-month lows. The imposition of fresh COVID restrictions in the UK continued weighing on the British pound. ECB jawboning on the euro strength might keep a lid on any meaningful gains for the cross. EUR/USD came under downside pressure yesterday. It has eroded the 55 day ma and attention has dropped to 1.2014 the September high and the 1.2003 2020-2021 uptrend, which we suspect will hold.  The Fed maintained the status-quo and noted that the economic recovery hinges on the COVID situation and vaccine progress. Meanwhile, Fed Chair Powell refrained from commenting on tapering while markets solid-off risk and bid up the safe-haven US dollar. The main equity indices on Wall Street saw their biggest one-day percentage drops in three months during the previous session, as hedge funds liquidated positions to raise liquidity after suffering losses on short positions in other stocks, amid highly speculative retail buying. This helped boost safe-haven demand for the U.S. currency.