No surprises from Janet Yellen at the Federal Reserve on Wednesday as she kept monetary policy "ultra dovish" while slashing the US growth rate forecast. Saxo Bank's Head of FX Strategy says it makes life more difficult for traders. John Hardy says she was trying to emphasise what he calls the "two-way risks" to policy and it could mean investors will have to take a much closer look at economic and financial data points which could lead to more volatility in forex markets.
John says she was trying to send a message that no one should assume what the FOMC will do next. In fact, John says the Fed doesn't really know itself. He says it's frustrating for traders as he's certainly looking for a USD recovery but it doesn't seem to be on the immediate horizon.