FX Closing Comments

In a good example of "buy the rumor, sell the fact" the Dollar sold-off significantly after today's Fed announcement. Although the quarter-point move was widely predicted and built into the market's expectation, when the chances of a 50-pt move was safely past, the Dollar fell hard with the Dollar Index dropping 100 ticks in the 2 o'clock hour. The index closed the session down 77 ticks. All other majors made gains on the day vis. a vis. the greenback with the Loonie the day's biggest winner. Tomorrow will bring personal income figures and the Michigan survey, although trade is likely to be light in FX pairs ahead of a quasi-holiday weekend.