The US dollar is beginning to come under broad pressure as the S&P 500 rips higher.
The short version of the FOMC statement: We removed ‘considerable time’ but ‘patience’ means the exact same thing as ‘considerable time’.
The knee-jerk was to take it as a removal of considerable time but now the market is acting as if it was left in by selling the US dollar and buying stocks.
The dollar is feeling the most heat against the commodity currencies while USD/JPY has remained relatively buoyant because of stock buying.
At the same time, inflation forecasts (both core and headline) have fallen, which is also a dovish signal (although somewhat expected).
