As the verdict rolled in and rates remained unchanged the dollar ebbed and flowed but was largely mixed on the day. That really was just in line with expectations, however, traders were hoping for some more direction around the language.

Some of the key takeaways were that inflation will still remain below the key target of 2%. However, the expectation is that we will still see three rate rises in the coming year. Perhaps even four.

The meeting was also the last for Janet Yellen as she hands over the reins.

Where to for the USD?

The Greenback is now in a mini range between 89.50 and 88.50. I’m still bearish on the USD and will be looking at the top of the range for an opportunity to sell it won’t be until we push back into the 90.00 area that I will take a second look.

Of course, all the attention now turns to the US employment data on Friday. As mentioned in the FOMC Statement, jobs will be a key focus. If the US can’t meet the inflation targets then jobs will probably be a secondary data point that they will need to be strong.

If both are weak then we might not be able to justify further hikes.