EUR/USD, USD/JPY flows - Fed holds, 10-2 vote, bullish on growth and Dec hike still seems on track

Fed opted for unchanged to ‘accumulate more information’ as expected. Vote is split with 2 in favour of a hike. The minority dissent is not a huge surprise although individuals more so with Cook less expected than some other more usual hawks. At 10-2 the vote is fairly heavily skewed to the wait-for-now decision. Commentary sticks to familiar characterisations, although activity is now at a strong pace rather than solid, which along with inflation still noted as elevated still supports expectations for a hike in Dec.

Little reaction with 2s and 10s within a basis point of pre-announcement, and dollar likewise just the smallest fraction off its highs prior. Presser still of interest but broadly speaking nothing too initially surprising here and still gives the impression of being on track for a Dec move unless things change before then. Market may be tempted to trim off some pre-event longs intraday but bigger picture no great impact and focus move onto the ECB next to see if that has any dovish shift yet.