Dollar Mixed After Fed Concludes Policy Meeting

The US dollar was mixed after the Federal Reserve had concluded its monetary policy meeting. The Fed made no changes to the policy, in line with market expectations, while the statement was mostly balanced but with a dovish bias.

The Fed mentioned in its statement that “labor market conditions improved further” but also admitted that “economic growth slowed.” Meanwhile, the statement dropped mentioning of risks being balanced. Instead, it said:

The Committee is closely monitoring global economic and financial developments and is assessing their implications for the labor market and inflation, and for the balance of risks to the outlook.

The statement did not reveal the planned path for future monetary policy adjustments. As a result, traders are already focusing on the March meeting, hoping to hear from the Fed anything that can make the future clearer.

EUR/USD gained from 1.0868 to 1.0899 as of 23:07 GMT today. USD/CHF dropped from 1.0168 to 1.0145. USD/JPY rose from 118.41 to 118.61. GBP/USD plunged from 1.4348 to 1.4239.

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