The verdict is in from the FED: rates to remain unchanged at 1.25%. The announcement matches analyst predictions of a static level and has come as a moderate surprise to U.S. equities markets.

A Static U.S. Rate Has Many Trading Accounts In Turmoil!

What a difference a month makes! In mid-August, it looked as though a rate hike was all but assured. This afternoon, FED Chairperson Janet Yellen put those notions to bed with an about-face and commitment to the status quo.

Today’s decision certainly came as a surprise to this trader. It goes to show the value of remaining flexible in our thinking and respecting the dynamic nature of markets. What appears to be a fact today may be fiction tomorrow.

Movers And Shakers

Initial action has been bullish facing the USD. Here are a few of the big moves across the Majors:

• EUR/USD      – 118 pips  

• USD/CAD     +104 pips    

• USD/JPY      + 71 pips

• USD/CHF     + 75 pips  

Robust participation is typical of a central bank release. As of now, the EUR/USD and USD/CHF are extending their runs aggressively.

The beauty of an external stimulus such as today’s FED announcement is that the wild price action will set up many other trades in the near future. For ideas and signals on how to profit from the aftermath of the FED standing pat, stay to tuned to FX Leaders.