USD vulnerable in the aftermath of FOMC meeting - BNPP

Research Team at BNP Paribas, notes that the US Federal Open Market Committee made only minor changes to its policy statement, leaving its forward guidance on rates unchanged.

Key Quotes

“The statement signalled a reduction in concerns over the external environment but acknowledged that, overall, activity and household spending appear to have moderated. In our view, the Fed’s steady policy, even as the risk environment and inflation expectations improve, leaves the USD vulnerable versus the funding currencies. We remain long EURUSD targeting a move to 1.16.”