Hawkish dot plot leads to a US dollar rally | Forexlive

The US dollar is 50-70 pips higher across the board following the FOMC decision.

The announcement of no change in rates was largely priced in but what caught the market off guard was a rise in the Fed’s dot plot to indicate that the median of policymakers see rates at 5.6% at year end. That would imply two more rate hikes before year end.

Fed chairman Powell will hold a press conference at the bottom of the hour. It will be pressed on how certain he is that two more rate hikes are coming.