XE Market Analysis: Asia – May 02, 2018

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The dollar had been on the rise ahead of the Fed, though abruptly turned lower following the FOMC announcement, where policy was left unchanged, as-expected. The statement noted the FOMC sees inflation close to goal, and sees further gradual rate hikes going forward. For the FX market, the statement was not overly hawkish, keeping a fourth 2018 hike sidelined for now at least. As a result of this and the fact the dollar has rallied sharply this week, profit taking appeared to be in order, leaving EUR-USD up at 1.2000 from 1.1960, and USD-JPY at 109.65 lows from 109.90.