The FOMC statement was about the best thing USD bulls could have realistically asked for via ForexLive

The Fed didn't get the memo that central banks are supposed to deliver surprises these days but there are a few things to chew on.

The FOMC statement didn't give any indications about whether hikes will come in June or not at all. The ‘patient' rhetoric rules out the next two meetings but after that it's an open question so the main takeaway from the Fed is that they will ‘wait and see'.

Some of the post-FOMC chatter surrounds the comments on inflation:

“Inflation has declined further below the Committee's longer-run objective, largely reflecting declines in energy prices” and “”Inflation is anticipated to decline further in the near term.” That ads a bit of dovish fuel and is getting the credit for the (mild) wave of USD weakness.

In other ways, however, this was the best the US dollar bulls could have hoped for. There is no comment on the currency and despite the inflationary warnings, the Fed maintains that it's all transitory. If I had seen this statement ahead of time, I would have expected more USD strength. That it hasn't materialized (ex CAD) argues that the dollar might be running out of fuel for the time being.

posted via ForexLive