On Wednesday, in choppy trade, the dollar was under pressure ahead of the Fed policy decision. The US eco data were also USD negative. The Fed kept its policy unchanged, but suggested that it was prepared both raise or reduce the pace of asset purchases as necessary. In theory, the Fed assessment could be seen as USD negative, but at the end of the day, EUR/USD closed the session only marginally higher. Intraday, the dollar was under pressure from the start of European trading. Continental European markets were closed in observance of the labour day holiday. London players were cautious to hold dollar long positions ahead of the FOMC policy decision. The move accelerated at the onset of the US markets.
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KBC