The U.S. Dollar declined from a one-month high on Thursday, after the Fed left policy settings unchanged, whilst the Pound stood firm ahead of the Bank of England meeting.

In Asian trading, the Euro rallied somewhat to $1.1705, edging up from a one-month low. The Pound rose 0.1% to $1.3643 as investors considered the risk of a hawkish stance from the Bank of England.

The Dollar remained close to multi-week highs against the Australian and New Zealand dollars, Reuters reports, and held on to gains against the Yen at 109.80.

The Federal Reserve kept policy settings the same on Wednesday, yet chair Jerome Powell indicated asset purchase tapering wasn’t far away, perhaps November, concluding around the middle of next year, setting the stage for subsequent rate hikes.

“Powell didn’t give any specifics about the start of the taper, he said there was broad agreement in the end of taper, one which ‘concludes around the middle of next year,’” according to John Briggs, strategist at NatWest Markets.

“This is in our view more important than when the taper starts, as it starts the clock on when the next hike may occur.”

With the Dollar marginally retreating in Asia, the index fell from a one-month high of 92.526 to 92.369. Powell added that tapering would not act as a “direct signal” on the rates outlook, despite forecasts from Fed members indicating a move in 2022.

The Bank of England’s monetary policy committee is meeting on Thursday, and is predicted to keep rates steady.

The risk-sensitive Australian Dollar stayed flat at $0.7243 by afternoon trading, whilst the New Zealand Dollar held steady at $0.7006. 

Moreover, Norway’s central bank is meeting on Thursday and is widely forecast to announce the first rate hike of the G10 central banks. The Norwegian Krone rose slightly to 8.6486 per Dollar.