O My FOMC

The FOMC meeting came and went, and with it went the US Dollar. While the Fed’s decision not to raise rates was largely expected, the markets nevertheless seemed shocked by the outcome. Before the Fed news hit the wires, the EUR/USD was still holding in congestion between 1.3290 and 1.3325. Upon the release, however, the EUR/USD pair shot up another 80 points to a high for the day at 1.3388. Looking further into the meeting’s minutes, it appears that the Fed has agreed that the economy is showing signs of a decline. This notion lead to a sharp drop in the US currency, and might have pushed the tightening bias out of the mindset of the Fed. Against the Australian Dollar, the news resulted in a 75-point gain, producing a new multi-year high. The Pound also pushed up 100 points and is currently trading at 1.9686.

David Hilgeman, XPRESSTRADE Analyst