That's part one over with and we do it all again tomorrow. Whoopee, I hear you cry
So how are we left after the rambling Fed head laid the smack down?
It looks like the market wanted something a bit more hawkish. Wasted expectations by the looks of things
USD/JPY is sub 119 at 118.91 as I write and broad yen buying looks to be doing the damage rather than a dollar blowout
EUR/JPY is ducking below the overnight lows at 134.60 but holding up above Monday's low at 134.45. GBP/JPY is into an area of support from 183.70/75 down to 183.50
Cable is largely unchanged and has been fairly sedate most of the day
EUR/USD is much the same and another test below 1.1300 was quickly soaked up again. Are we knocking on that particular door too often though?
Yellen was pretty much "we're doing well", "we'll raise when we're ready" and we might pull the word "patience" out sometime soon
As far as the Fed mandate goes everything is coming up roses. As far as some of the economy is performing, I'm not so sure.
The Fed is on the balance but very much at the hawkish end and that's the way the market wants to lean too. If the economy does take a step back, and mid-2015 is completely ruled out as liftoff time, then there's going to be a fair few toys thrown out the pram methinks.
Three guesses what Yellen will think about that? ;-)
