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USD/JPY sinks as Fed remains on hold but revises dot plot plan lower

The US Federal Reserve has just announced the outcome of their final policy decision of the year. As expected the Fed has left its Fed Funds rate on hold at the current levels, of between 5.25% and 5.50%. The market reaction to outcome has seen the dollar fall quite sharply. The dollar was pretty flat on the day heading into this decision in terms of the dollar index, but the USD/JPY was lower had been tracking lower all afternoon. However, the Fed has unexpectedly pushed down its dot plot plan and that has been shifted lower. It is now pricing an earlier than anticipated Fed cut and that has dented the dollar quite markedly and sent the USD/JPY tumbling towards 144. The EUR/USD has charged higher too and now busted above its 200 day moving average on this surprise revision. The USD/JPY is just now trading at 144.35 following this surprise development 

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