[MARKET ANALYSIS] DXY remains softer after the FOMC lacked any hawkish surprises

DXY: -0.1% Remains softer in the aftermath of the FOMC meeting, where the Fed kept rates on hold, as widely expected, but with two hawkish dissenters as Hammack (exp.) and Cook (unexp.) voted for rate increases, while the Committee noted that "The accumulation of more information will help the Committee determine the policy stance appropriate to ensure a timely return of inflation to the Committee's 2 per cent goal". There was initial choppy price action seen following the decision and statement, although USD pressure set in shortly after as Fed Chair Warsh's press conference lacked the hawkish elements needed to support the buck and resulted in a decline in short-end yields. EUR/USD: Flat Holds on to the prior day's gains after benefitting from the softer buck and as participants await the ECB meeting, where policymakers are expected to keep rates unchanged despite elevated energy prices and inflation concerns. GBP/USD: +0.1% Marginally gained following the FOMC and UK Budget announcement, with Chancellor Healey confirming a 3ppt increase in the bank tax surcharge at the Autumn Budget announcement, while the OBR raised its 2027 inflation forecast to 3.4% from 2.0% and lowered GDP growth expectations to 1.0%. USD/JPY: -0.1% Trickled lower with headwinds seen post-FOMC and amid few fresh catalysts for Japan, while the BoJ begins its 2-day policy meeting, where the central bank is expected to keep rates unchanged, although participants will be eyeing the language regarding achieving the 2% price target. Antipodeans: AUD/USD Flat / NZD/USD -0.1% Price action is range-bound amid the mixed risk appetite and absence of tier-1 data releases.