Fed stays put, sends expected “No Rush” message – Danske Bank

With the Fed's 'lack of urgency'-signal being in line with expectations the market reaction proved very limited upon announcement, Danske Bank's FX analysts report.

EUR/USD drops to 1.13 in limited Fed reaction

"The curve bull-flattened slightly while the USD gained somewhat with EUR/USD falling to the 1.13 level. At this stage lack of news is good news for the greenback with investors likely trimming USD shorts (negative carry) from stretched territory."

"While we maintain a strategic bearish view on the USD, we highlight that our tactical conviction is low and with the asymmetric sensitivity skewed towards USD-bullish news the recent rebound could extend in the coming sessions - naturally subject to news from the Trump administration."