The Federal Reserve decided not to introduce any policy changes this time. Those that expected QE3, QE3 Lite or anything of that sort are retreating. The initial reaction is a stronger dollar. EUR/USD dropped under 1.31. USD/JPY is a bit higher. It is challenging the 82.87 line. Trading is still choppy – the dollar retreated after the initial move and is now falling again. Highlights from the statement: QE3 is NOT mentioned whatsoever. Forecasts are a bit stronger. This is mentioned in the statement: “the unemployment rate has declined”. Regarding inflation, the FOMC says it remains subdued, but it does acknowledge the rises in crude oil and gasoline prices. Only Jeffrey Lacker voted against the decision. He doesn’t to keep the pledge to keep rates low until late 2014. All in all, the decision was widely expected, so the reaction in the markets isn’t so strong. It’s important to remember that the full reaction to US rate decisions usually take time. The full reaction might be seen as late as the European session tomorrow. Why this was expected As this meeting drew closer, more and more positive signs piled up and reduced the chance of more QE. The recent jobs report, which showed a big gain in jobs and also in the employment-to-population ratio was icing on the cake. As noted in the FOMC preview, the Federal Reserve had quite a few other policy options, including extending Operation Twist or announcing a sterilized QE3 – meaning that the central bank would drain funds out of the markets. This is what the ECB does. In the previous meeting on January 25th, the Fed extended its pledge to keep interest rates low from mid 2013 to late 2014. EUR/USD traded around 1.31 before the release. It fell under the 1.3080 line earlier in the day, but managed to escape. USD/JPY was capped under the 82.87 line, trading around 82.70 before the publication. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Forex News Today: Daily Trading News share Read Next Forex Daily Outlook March 14 2012 Anat Dror 10 years The Federal Reserve decided not to introduce any policy changes this time. Those that expected QE3, QE3 Lite or anything of that sort are retreating. The initial reaction is a stronger dollar. EUR/USD dropped under 1.31. USD/JPY is a bit higher. It is challenging the 82.87 line. Trading is still choppy - the dollar retreated after the initial move and is now falling again. Highlights from the statement: QE3 is NOT mentioned whatsoever. Forecasts are a bit stronger. This is mentioned in the statement: "the unemployment rate has declined". Regarding inflation, the FOMC says it remains subdued, but 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.