Very choppy trade in the US this morning but the afternoon became somewhat directional.

EUR/USD tested the lower reaches of its recent ranges slipping to 1.3547 early in the day but the market was very quick to cover shorts after failing to take out the 1.3535 lows from last week.

Prices shot higher, especially after overcoming London highs of 1.3595. Heavy buying from China and Russia helped fuel a nasty squeeze as high as 1.3655, as did fears of a terror attack on US soil. A small plane flew into a building in Texas, but it looked to be the act of a lone nut rather than an international terror incident.

A rumored bout of EUR/CHF buying by the SNB also helped prompt short-covering in a variety of EUR crosses. That pair jumped from

Prices fell all the way back to the 1.3555 before rebounding again to 1.3620/25 late in the day. Longs and shorts alike were grumbling today.

The grumbling has only just begun! Half-way through this wrap up the Fed kindly raised the discount rate and gave the dollar a major lift. EUR/USD fell briefly below 1.3500, triggering massive barrier options.

USD/JPY fell early in the session as EUR/JPY followed EUR/USD lower but heavy buying of USD/JPY by macro funds helped reverse the decline and take USD/JPY as high as 91.49 before exporter offers at 91.50 capped the rally.

The late rise in the discount rate sent USD/JPY higher as US short-term rates edged up. We’ve traded as high as 91.80, just below important 91.88 resistance. Exporter offers reside at 92.00.

Cable found repeated support at 1.5550/60 until the Fed stood the market on its head. It fell as low as 1.5503.

AUD was derailed by the Fed late, sending it down to 0.8921 from near 90.20 just moments before.