Dollar sinks as FOMC takes the lower path on rate hikes

USDJPY falls to 123.60 after FOMC announcement

It doesn't get much whippier than that and USDJPY has come out of it rather unscathed. The market knows that rate hikes are coming but it's the future path of them which has done the damage

7 of the 17 dots are below 0.5% and my colleague Mr Button notes that if that includes all of the governors then it's highly unlikely we will get another hike this year

For USDJPY it's not been too bad a move but the action in the euro and pound have been more pronounced as some of the rate differential risk is reduced

USDJPY

Unless Yellen comes out with a tape bomb in the presser the prevailing levels at either end of the recent ranges should contain any moves, at least in USDJPY. For the Euro and cable, the pound is most at risk for continuing to gain.