Flash: USD receives strong base in aftermath of Fed – Westpac

FXstreet.com (New York) - According to Strategist Robert Rennie at Westpac, “Markets were clearly set up for an FOMC statement and press conference yesterday that would soothe anxieties around Fed policy though instead we were confronted with a Fed that is giving off much less dovish fumes.”

Markets are not used to getting ‘the cold shoulder’ from Bernanke. This makes yesterday’s press conference all the more difficult to digest. “We believe that the USD has now found a strong base here and should see multi-day gains going forward.” Rennie adds. In contrast to the Fed’s less dovish tack, Draghi reiterated in the last day or so that the ECB is still very open to providing yet further support in the form of non-standard measures, seemingly backtracking on his message at last month’s ECB meeting.