As expected, the FOMC today was a non-event. In the press conference, Chairman Powell continued to assure markets that the Fed would only begin to “start talking about tapering their asset purchases” when they made “substantial further progress” towards their economic and financial goals. In our view, this plainly reads to us that the Fed has no intention of withdrawing monetary support to the economy any time this year. However, as we have said before, we think that the conditions for “talking about talking about tapering” will be met by approximately December 2021. However, for the time being, we think of this meeting as entirely dovish (as expected). This places our preferred dollar short, GBPUSD, in a good position, and indeed, it was up on the meeting:

Furthermore, our trading tools systems continue to point to GBPUSD being attractive from a risk-reward, volatility, and momentum setup:

This Fed meeting tells us that relation will continue to be supported by accommodative monetary policy, i.e., USD supply will continue to increase. Hence, the best way to express these relation views is in assets that are in shortage relative to dollars and can improve economics. GBPUSD is one of the many assets that fall into this category but is one of the few currency pairs that fall into this category.