Forex news for New York trade on September 20, 2017:

Federal Reserve headlines:

News:

Markets:

  • S&P 500 up 2 points to 2508
  • WTI crude up $1.06 to $50.69
  • US 10-year yield up 4 bps to 1.87%
  • NZD leads, EUR lags

The dot plot was the big story of the day as it continued to show high expectations for a rate hike before year end. The market had sold dollars in the hours leading up to the decision and was immediately caught wrong-footed.

USD/JPY jumped to 112.50 from 111.25. EUR/USD crashed down to 1.1870 from 1.2010. Before the quick moves there were whipsaws to the upside that tripped stops and frustrated traders.

Cable touched 1.3650, which is a new cycle high but finished just below 1.3500. The next move will be driven by the dollar, especially if a tax plan comes to fruition.

Earlier in the day, the commodity bloc was bid on a variety of factors but it mostly unwound on the Fed headlines. Still NZD and AUD managed to hold onto a gain on the day.