The US dollar has strengthened following the latest FOMC meeting with the dollar index rising back towards the top of its recent narrow trading range between 92.000 and 94.000. The Federal Reserve has strengthened forward guidance but lacked urgency to meet to new goals, per MUFG Bank. Key quotes “The price action is interesting as it suggests some degree of disappointment that the Fed did not go further and announce even more aggressive easing. It is another indication that a lot of the bad news is now priced into the US dollar at the current juncture which has helped it to consolidate at sharply lower levels since the end of July. It keeps us wary of the risk of a short-term correction higher for the US dollar in light of building US dollar short positions and bearish sentiment.” “The Fed backed up their recent updated policy goals by strengthening their forward guidance. The new goals revealed that the Fed will place more importance on achieving full employment and tolerate a moderate inflation overshoot for some time thereby signalling that policy will remain looser for longer than normal during the economic recovery.” “While the dovish forward guidance wasn’t sufficient to trigger further US dollar weakness in the near-term, it will continue to place downward pressure on the US dollar in the coming years by helping to anchor nominal yields and encouraging higher inflation expectations and lower real yields during the economic recovery.” “The Fed still has room as well to loosen policy further by adjusting their QE programme which was left unchanged. There was some disappointment though that the Fed did not commit to do more immediately to help achieve their new policy goals more quickly. The tone of Chair Powell’s comments in the press conference added to that sense of disappointment as well over the Fed’s more passive approach.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next USD/IDR: Rupiah recovers to 14,850 on Bank Indonesia’s status-quo FX Street 2 years The US dollar has strengthened following the latest FOMC meeting with the dollar index rising back towards the top of its recent narrow trading range between 92.000 and 94.000. The Federal Reserve has strengthened forward guidance but lacked urgency to meet to new goals, per MUFG Bank. Key quotes “The price action is interesting as it suggests some degree of disappointment that the Fed did not go further and announce even more aggressive easing. It is another indication that a lot of the bad news is now priced into the US dollar at the current juncture which has helped it… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.