The US dollar surged around 90 pips right across the board after the Federal Reserve statement. We look at what exactly was behind the buying and what it means for the US dollar next. Premium subscribers emailed us about GBPUSD & AUDUSD and NZDJPY shorts as well as longs in USDCHF have seen their gains expand, following last night's Premium note calling for sticking with GBPUSD shorts, which currently net more than 200 pips.
1. A 'significant' change
The Fed altered the assessment of “significant underutilization of labor resources” and instead said the underutilization is “gradually diminishing”. It's a nod to the fall in the unemployment rate falling below 6%.