The FOMC left rates on hold at 2% which was widely expected but voiced their growing concern about inflation but also said that they expect price pressure to moderate through the year. These comments lead many to believe that the chance of the Fed hiking rates has become more limited and thus we see an easing of the Dollar against the Euro. Overall the chance of the Fed raising rates during Q3 has already been priced into the market so it??™s likely that the Dollar bulls will be disappointed with the news.
With the ECB likely to be raising rates at some stage in the near term then the big winner was the Euro.
Oil dipped to just above 4 barrel on a surprise rise in stocks. Plenty of data released later including US home sales which may have climbed as prices have become attractive to those who can get credit.
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