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USD in corrective mode after uninspiring FOMC statement

Market’s reaction to FOMC rate decision overnight was rather muted. The balanced to slightly positive statement secured the chance for June hike, which fed fund futures are already pricing in 100% odd. But it did little on changing the market expectations on the chances of the fourth hike this year in December. That is, it’s still uncertain.

Nonetheless, be patient. Expectations could build up again after today’s ISM services and tomorrow’s non-farm payroll. And, the rate path for the year should be much clearer after new Fed projections to be delivered after next FOMC meeting on June 13.

Here are some reports on FOMC that are worth a read:

And the full statement here: (FED) FOMC Statement May 2, 2018

USD is staying in corrective mode after FOMC announcement. There is broad based selloff in the current 4H bar as seen in the USD Heat Map. But USD is held above yesterday’s low against all at this point. So the retreat is shallow so far. And the greenback remains the strongest one for the week. It just cannot overwhelm CAD still.

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