Dollar stays mixed after FOMC rate decision

Dollar is trading mixed in Asian session so far as market showed little reaction to FOMC.

The greenback is also trading down for the week against all but Yen and New Zealand Dollar.

Fed kept federal funds rates unchanged at 1.75-2.00%. Assessment on economic activity was upgraded from “solid” to strong”. Also, “household spending and business fixed investment spending have grown strongly.”

As priced in by Fed fund futures, the chance of two more hikes by December to 2.25-2.50% has firmed up again this week to around 67.6%, from 65.5% a week ago.

Some suggested readings on Fed:

• FOMC Remains on Hold, But More Rate Hikes Clearly on the Way
• FOMC Recap: Powell’s Snoozer Leaves Traders Looking ahead to BOE and NFP
• FOMC Takes a Summer Vacation from Rate Hikes, But Likely Back to it in September
• Fed Holds Rates Steady With Minor, Hawkish Changes to Policy Statement