Fed keeps rates unchanged and gives little if anything away in the statement
There is not a lot to take away from the Fed statement just out. Keeping rates unchanged as expected, the expectations for a hike next month are unlikely to change based on the rhetoric, which sticks to the line that gradual tightening will be required.
For those looking for a direct prompt for a hike in Dec, there was nothing to suggest this though pointing to a strong labour market, economic activity, and household consumption, there seems to be little to suggest the Fed are going to change their stance based on the data so far.
North American traders have been buying the USD into the announcement and given their usual preference to push the current narrative in play, we are seeing fresh daily highs on the USD, with EUR/USD back in the 1.1300's while USD/JPY is still eyeing a push for 114.00.
Looking across the board though, we have a more modest pullback in the likes of AUD and NZD, though Cable is also pushing the lows as we test the lows from yesterday. 1.3025 and 1.2950 are the next support lower down.
In the majors though, EUR/USD is looking to retest the bids seen just ahead of 1.1350 seen earlier this week, while USD/JPY resistance remains heavy inside the 114.00-115.00 area as we saw in early Oct.