FOMC raises US interest rates to 2.5%

The markets consolidated ahead of the FOMC decision on the rate hike paring the dollar lower against the major crosses.
The FOMC rate hike, which had largely been discounted by the markets, failed to have any major impact on the crosses. The Fed continued with its measured approach towards further rate hikes in the coming months, disappointing the dollar sentiments.
Euro overcame some paltry data from Germany to move to 1.3080 but remained stuck to its range trading around 1.3030 after the FOMC decision. Cable remained stable, hovering around the 1.8840 levels as markets ignored the FOMC rate hike.
Yen tested the 104 levels before moving back to resume trading at 103.80, as the 103.75 levels still remain a point of resistance. With uncertainty still looming over the outcome of the Yuan revaluation during the G7 meeting, the yen is expected to remain under pressure.
The PCE price index benign at 1.5% well under the target of 2.0% over the past six months, the Fed sees no reason to adopt a hawkish outlook towards further rate hikes.