Talking Points:
- The Fed kept rates unchanged and its statement bolstered rate forecasts, but the Dollar couldn't run on the data
- Though it was considered significantly less influential, the Australian CPI leveraged the biggest AUD move
- Importance didn't match market impact for UK GDP and RBNZ, will the same hold true of US GDP and BoJ?
See how retail traders are positioning in the Dollar-based majors after the Fed and before US GDP using the FXCM SSI readings on DailyFX's sentiment page.
The order of importance of this past session's event risk didn't match the order for which it impacted the market. The key FOMC rate decision and UK 1Q GDP figure - with influence that spans well beyond their own currency and regional assets - generated limited impact. In contrast a dip into deflationary territory pummeled the Australian Dollar and an RBNZ hold in policy (similar to the FOMC hold), leveraged an impressive New Zealand Dollar rally. Anticipation and surprise helped dictate this unexpected turn of events. Yet, limited initial engagement, these underlying themes must be kept in direct view. Ahead, we have another important round of event risk. Are we in for another surprising outcome? We discuss this in today's Trading Video.
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