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FOMC Statement and Economic Projections - USD Dips

The FOMC held the benchmark interest rate at near 0%. shaved off another 10B starting from its QE program, which will be $35/month starting in July

Growth projection: The 2014 GDP projection has been reduced to 2.1%-2.3%, from March's projection. 
Inflation projection: The Fed expects that inflation will stabilize around target of 2.0% in 2016. For now, the committee sees that inflation "has been running below the committee's longer-run objective"
Employment projection: Unemployment is at the lowest in 6 years, at 6.3%. However, the participation rate at 62.8%, lowest since March 1978. The unemployment rate It is expected to fall below 6% in 2015.


(source: Federal Reserve Bank)

It's okay if you let out a few yawns during this key event risk. There wasn't anything new. There might be a slight disappointment for those expecting a more hawkish tone due to the growing inflation pressure. The reaction in the USD has been mixed so far during and immediately after the FOMC statement and presser. 

Taking a look at the USD Index, we see that after an initial bullish reaction, traders faded the USD. It is making new lows on the week below 80.40. Below 80.24, the 79.88 support pivot is the next support level. At this point a break above 80.70 would be a major bullish continuation signal.


(usdx 4h chart 6/18)