“Labor market conditions improved somewhat further, with solid job gains and a lower unemployment rate” – is quite hawkish from a usually dovish Fed. The considerable time phrase regarding rates remained basically unchanged. USD strengthens across the board — Hawkish Highlights “Solid job growth” and “diminishing underutlization” are key bullish statements. Inflation has declined somewhat, but :”survey-based measures of longer-term inflation expectations have remained stable” Dovish dissenter, contrary to two hawkish ones last time. No mention of global worries. No mention of a possibility of a new bond buying program (QE4). Here is the opening remark from the statement, emphasis mine: Information received since the Federal Open Market Committee met in September suggests that economic activity is expanding at a moderate pace. Labor market conditions improved somewhat further, with solid job gains and a lower unemployment rate. On balance, a range of labor market indicators suggests that underutilization of labor resources is gradually diminishing. Household spending is rising moderately and business fixed investment is advancing, while the recovery in the housing sector remains slow. Inflation has continued to run below the Committee’s longer-run objective. Market-based measures of inflation compensation have declined somewhat; survey-based measures of longer-term inflation expectations have remained stable. Market reaction The dollar is clearly stronger. EUR/USD loses support, forms H&S pattern GBP/USD finds support at 1.60. USD/JPY breaks 108.35 top. AUD/USD falls from false breakout, still in high range NZD/USD drops below 0.78 as RBNZ signals end of tightening cycle, Fed hawkishness Canadian dollar putting up a fight amid Fed hawkishness Background and Video The Federal Reserve was expected to end the Quantitative Easing program, that ran at $15 billion of bond buys per month after the last taper. The focus is on 3 parts in the statement: “considerable time” regarding rates, “significant underutilization” regarding employment and the view on inflation. There is no press conference nor Fed forecasts this time. Despite Bullard’s suggestion to end QE, the improving conditions among other reasons pointed to the end of QE3 after over 2 years in action. In the larger scheme of things, QE is ending end after 6 years. What’s next? Here is a quick Fed Preview: 4 things to look out for Follow a live coverage of the Fed decision with Valeria Bednarik and myself here: Live streaming video by Ustream More: EUR/USD: Is a Dovish FOMC Already Priced In? – BTMU Did US Treasury Secretary Lew hint of a strong GDP number 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 AUDJPY Produces Bearish Rejection Candle as Price Slams into Dale Woods 8 years "Labor market conditions improved somewhat further, with solid job gains and a lower unemployment rate" - is quite hawkish from a usually dovish Fed. The considerable time phrase regarding rates remained basically unchanged. USD strengthens across the board -- Hawkish Highlights "Solid job growth" and "diminishing underutlization" are key bullish statements. Inflation has declined somewhat, but :"survey-based measures of longer-term inflation expectations have remained stable" Dovish dissenter, contrary to two hawkish ones last time. No mention of global worries. No mention of a possibility of a new bond buying program (QE4). 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