No Impact from FOMC, Dollar Remains Firm

Market Overview | Written by ActionForex.com | Aug 05 08 18:55 GMT |

The FOMC announcement comes and goes without much impact to the markets. Fed left rates unchanged at 2.00% as widely expected with Fisher as the lone dissenter again, voted for a hike. Fed's accompany statement is rather balanced and less hawkish than expected. The committee still expects inflation to moderate later this year and next but believe that the outlook remains "highly uncertain". Also, the fed believes that the substantial easing of monetary policy, and liquidity fostering measures will help to promote "moderate economic growth". More importantly, the statement emphasized that Fed will continue to monitor the developments and "act as needed" to promote "sustainable economic growth" and "price stability."

The statement suggests that Fed is still firmly on hold in the near future and gives no indication on when the Fed's next move will be. Dollar remains firm against most major rivals, continues to be supported by weakness in commodity prices. Stocks extends rally further after Fed's announcement