[MARKET ANALYSIS] DXY is rangebound following a lack of major fireworks at the FOMC and Powell presser

DXY: -0.1%

• Trades marginally lower after gaining yesterday with strength seen throughout the prior day heading into the FOMC announcement, before paring some of the advances in the aftermath of the decision in which the Fed unsurprisingly maintained its rates at 3.50%-3.75% through a 10-2 vote split with Miran and Waller calling for a 25bps rate cut. There was a lack of major surprises and fireworks from the meeting and presser, although Powell noted that rates are at the higher end of the range of neutral, and if they see the tariff effect on goods pricing peaking over this year, that would tell the Fed it can loosen policy.

EUR/USD: %

• Regained some composure after recently pulling back from the 1.2000 handle, while there were several comments from ECB officials, but had little impact, including Schnabel, who said rates are in a good place and expected to remain at current levels for an extended period.

GBP/USD: +0.1%

• Trades little changed after just about retaining the 1.3800 status and with light newsflow from the UK as PM Starmer visits Beijing and will meet with Chinese President Xi Jinping in an effort to reset bilateral relations.

USD/JPY: -0.2%

• Trickled lower and retested the 153.00 level to the downside as risk sentiment deteriorated despite the big tech earnings beat.

Antipodeans: AUD/USD +0.2% / NZD/USD +0.1%

• Remained afloat in rangebound trade and following firmer Export and Import price data from Australia, but with upside limited given the deterioration in risk sentiment.