NY Focus: The Fed hiked rates. No surprise there. The statement was upbeat, and the Fed tweaked the dot-plot forecast. It looks like there will be two more rate increases still to come this year and a press conference after every meeting., starting in 2019. That caused a bit of furor. FX markets reacted predictably, and the US dollar soared on the news
EURUSD opened at 1.1754 and drifted to 1.1790 into the FOMC meeting. Traders may have been expecting a more benign statement and more concerned about Thursday’s ECB meeting. The statement was released, and the single currency plummeted to 1.1724 and then bounced to 1.1800. The dot-plot forecast may have had something to do with the rally. Only eight Committee members favoured four rate hikes in 2018, while seven preferred just three.