The dollar put in for a cliff hanger end to the trading week. In an otherwise quiet market, the greenback finally broke from the bonds of congestion that a few prominent pairs have maintained for weeks, and in one case, months. Yet, for those that are trying to discern the currency’s direction, it may surprise them that the move break was a bearish one.

The British Pound halted the three-day slide against the greenback as a Bank of England survey showed a rise in inflation expectations, and the currency may continue to retrace the sell-off from earlier this week as the daily RSI bounces back from oversold territory. However, as the MPC is scheduled to release its March meeting minutes next week, the GBP/USD is likely to maintain the narrow range carried over from earlier this month as investors weigh the prospects for future policy

The New Zealand dollar extended the rally from earlier this week and is the best performing currency against the greenback on Wednesday, while the Japanese Yen weakened across the board and retraced the two-day rally against the U.S. dollar.

 The Euro tipped lower against the greenback on Wednesday, with the exchange rate slipping to a low of 1.3545 during the overnight trade, and the single-currency is likely to maintain the narrow range carried over from the previous week as policy makers in Europe aim to support the economies operating under the fixed-exchange rate system.

The New Zealand dollar rallied for the second-day to reach a high of 0.7036 against the greenback, while the Japanese Yen weakened against most of its major counterparts as investors increased their appetite for risk.