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The rate decision from the FOMC was to stay on hold, with a note that nothing really has changed since the last meeting, and more confirmation that the Federal Reserve are still prepared to back-stop all and sundry in regard to buying Treasury notes, and balance sheet assets that others do not want.

On an extremely low volume day the initial reaction has been stocks lower and dollar higher, and with the global markets already closed it is down to the U.S. to guide dollar direction.

Treasury yields (interest rates) increased after the release, and that initially empowered the dollar, but the major pairs are at critical levels right now; it will take a big volume move to break the range, or for equities to collapse. The bottom line is that equity markets will not enjoy higher rates, the Fed will not want higher rates, but the dollar bulls will keep on buying notes, bills, and other dollar denominated assets until that 10 year yield starts to drop.

It may not be a burning desire to be long the dollar, moreover a common sense play to get long an asset that pays more than others; the U.S. note.