FX Action: The dollar slipped FX Action: The dollar slipped in the aftermath of the FOMC announcement and statement, taking EUR-USD to 1.0735 from 1.0640, and USD-JPY from 121.10 to 120.54 lows. Shorter yields fell back on the more dovish Fed take, while Wall Street turned moderate losses into moderate gains.
Fed wants 'further improvement' in labor market to raise rates The Fed said in today's statement, "The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term. This change in the forward guidance does not indicate that the Committee has decided on the timing of the initial increase in the target range."
FX Action: USD-JPY has put in a nearly one-week low FX Action: USD-JPY has put in a nearly one-week low of 120.87, with light stops reportedly kicking in on the move under 121.00. The pairing had been stuck inside of 121.10-20 since the N.Y. open. Ahead of the Fed, follow through is not expected, with talk of Japanese pension fund buying on dips noted.