The US dollar has slumped and risk assets are rallying after the FOMC statement and forecasts.

The latest dot plot shows 7 of 18 Fed members forecasting a rate hike (or more) in 2023. That means the majority still see no move higher through that year.

The immediate reaction was selling in the US dollar and buying equities. The S&P 500 went from -20 to +4 and the Nasdaq from -1.1% to flat. USD/CAD is down to 1.2440 from 1.2485. EUR/USD is up to 1.1950 from 1.1910.

It’s a uniform move across the board and is likely to be underscored by Powell in his press conference.