Dollar dropped as Fed dig in - The Fed rate...>

FOREX: Dollar dropped as Fed dig in

- The Fed rate decision came and went broadly alongside expectations, although

those looking for a hike to the IOER were left disappointed. The Fed statement,

as well as the subsequent Q&A, pressed home the message that the Fed won't budge

on their ultra-low, ultra-stimulative policy until the FOMC can be confident

that the economy is on the right path back to target inflation and full

employment.

- The greenback fell against most others, but notably against the CAD, which

extended its recent recovery to hit multi-week highs. USD/CAD traded below the

50-dma at C$1.3905 for the first time since January as oil markets bounced

sharply. The WTI futures curve traded very well, with front-month WTI up well

over 20%.

- Focus Thursday turns to the ECB rate decision and press conference. The ECB

are seen keeping policy on hold following the deluge of policy measures and

innovations made in recent weeks. Furthermore, there is no refreshed set of

economic projections to pore over.